Question

Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet and the variable cost is $2 pe
Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet and the variable cost is $2 pe
0 0
Add a comment Improve this question Transcribed image text
Answer #1
1) (a) 30,000 packets 2) (d) 35,000 packets

Break-even

= Fixed cost / (Selling price - Variable costs)

= 120,000 / (6 -4)

= 30,000

Target sales

= (Fixed cost + Target profit) / (Selling price - Variable costs)

= (120,000 + 20,000) / (6 -4)

= 35,000

Add a comment
Know the answer?
Add Answer to:
Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet and the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 14: Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet...

    Question 14: Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet and the variable cost is $2 per packet. The fixed costs are $120,000. How many packets of candy Chocolate Extreme must sell for $20,000 desired profit? Select one: O a. 40,000 packets O b. 35,000 packets O c. 45,000 packets O d. 42,000 packets

  • Question 13: Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet...

    Question 13: Chocolate Extreme sells chocolate candies in packets. Chocolate Extreme sells at $6 per packet and the variable cost is $2 per packet. The fixed costs are $120,000. How many packets of candy Chocolate Extreme must sell for break-even? Select one: O a. 30,000 packets O b. 35,000 packets O c. 20,000 packets O d. 25,000 packets Question 14:

  •    Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently...

       Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently takes 1 hour to produce a batch of chocolate candy, and 2 hours to produce a batch of hard candy.   Given the current factory space, the company can work a total of 600 hours per month. The company feels that the current demand for chocolate candy would support the sale of up to 400 batches per month, while current demand for hard candy would...

  • Cooper Company sells a product at $50 per unit that has unit variable costs of $20....

    Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...

  • reconcile the difference in profit in both methods. 1. Piscopo Company produces mint chocolate candies. The...

    reconcile the difference in profit in both methods. 1. Piscopo Company produces mint chocolate candies. The chocolates sell for $12 per box During its first year of operations, the company produced 10,000 boxes of chocolates and sold 9,000 boxes of the candies. The company's cost information includes the following: Direct materials Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses Variable manufacturing overhead Variable selling and administrative expenses $ 2.00 per unit $ 3.00 per unit $20,000 $ 5,000...

  • 47. Jen-Chi's Tea House produces 500 4-ounce packets of tea per week. Jen-Chi's vanad is $14.10 per packet and his...

    47. Jen-Chi's Tea House produces 500 4-ounce packets of tea per week. Jen-Chi's vanad is $14.10 per packet and his fixed cost per week is $1.775. Jen-Chi's total cost per week is. A) $17.65. B) $5.275. C) $7.050. D) $8,825. 48. If a firm has $10,000 in variable costs and no fixed cost, then the time period referred to is the: A) market period. B) short run. C) long run. D) very long run. 49. At 500 units of output,...

  • Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the...

    Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.20; total fixed costs are $150,000. An increase in chocolate prices causes the variable cost per unit to increase to $0.55. Calculate the breakeven point in units? (Round answer to 0 decimal places, e.g. 5,275.) Breakeven point in units bars Using the above breakeven point in units, calculate breakeven sales in dollars. (Round answer to 0 decimal places, e.g. 5,275.) Breakeven...

  • Dotball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was...

    Dotball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,800 per month. The machine costs 58.000 and is depreciated using straight line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1,500 per month. Dotball currently makes and sells 3,000 jaw-breakers per month. Dotball buys just enough materials each month to make the jaw-breakers it...

  • Chapter 6 Assignment i Saved Juniper Enterprises sells handmade clocks. Its variable cost per clock is...

    Chapter 6 Assignment i Saved Juniper Enterprises sells handmade clocks. Its variable cost per clock is $16.10, and each clock sells for $23. 10 Calculate Juniper's contribution margin per unit and contribution margin ratio. If the company's fixed costs total $5,037, determine how many clocks Juniper must sell to break even. points Complete this question by entering your answers in the tabs below. eBook Contribution Break Even Margin Point Print Calculate Juniper's contribution margin per unit and contribution margin ratio....

  • Gumball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was...

    Gumball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,600 per month. The machine costs $5,500 and is depreciated using straight line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1,100 per month. Gumball currently makes and sells 3,100 jaw-breakers per month. Gumball buys just enough materials each month to make the jaw-breakers it...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT