I need help with managerial accounting

Price: $10 USD

Question description

1) The Jack Corporation produces candy bars and many other consumable food products. The Manager of Operations has calculated that the wholesale price for a box of almond candy bars is $35. Fixed costs associated with this candy bar line are $10,000,000 per year.

a) Sales forecasts indicate that Jack Co. can sell 100,000 boxes of this candy bar at a unit price of $35 per box.  What is the highest variable cost per box that Jack can pay and still achieve a net profit of $1,600,000?

b) Assume that the variable cost is $23 per box. What would be the expected profit (loss) be at this level of variable cost?

c) What is the break-even point in units and dollars for the almond candy bar line?

Tutor Answer

(Top Tutor) Daniel C.
School: Cornell University
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