Discussion:
Ultimate Jelly Company manufactures two different types of jelly, one with sugar (Jelly) and one without sugar (Simply Jelly).
The following information is available for the two products:
Jelly Simply Jelly
Sale Price Per Unit $5 $7
Variable Expense Per Unit $3 $6
Total fixed expenses are estimated at $350,000. One jar of Jelly is sold for every 1 1/2 jars of Simply Jelly.
a) Determine the breakeven sales in units of both products.
b) Compute the target sales in dollars if Ultimate Jelly wants to earn $70,000 in operating income