At the current product mix what total dollar sales volume


Question - The Grandma Corporation manufactures two products - cookies and candy.  Cookies have a contribution margin of $4 per box, and candy has a contribution margin of $5 per bag.  Grandma's total fixed cost is currently $450,000.  Grandma expects to sell two boxes of cookies for every three bags of candy sold.  Boxes of cookies and bags of candy each sell for $10.

At the current product mix, what total dollar sales volume is required for Grandma to earn a pretax income (profit) of $217,000?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: At the current product mix what total dollar sales volume
Reference No:- TGS02513514

Now Priced at $25 (50% Discount)

Recommended (92%)

Rated (4.4/5)