# Managerial Accounting help

Sigchi4life
Category:
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?

(Top Tutor) Daniel C.
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School: University of Virginia
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