Question - Candies Inc. manufactures and sells two products, marshmallow bunnies and jelly beans. The fixed costs are $350,000, and the sales mix is 70% marshmallow bunnies and 30% jelly beans. The unit selling price and the unit variable cost for each product are as follows:
Products Unit Selling Price Unit Variable Cost
Marshmallow bunnies $2.40 $1.00
Jellybeans $1.80 $0.90
a. Compute the break-even sales (units) for the overall product, E. ?
b. How many units of each product, marshmallow bunnies and jellybeans, would be sold at the break-even point?