Case study-candies inc


Candies Inc. manufactures and sells two products, marshmal low bunnies and jelly beans. The fixed costs are $350,000, and the sales mix is 70% marshm allow 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

Marshmal low bunnies                  $2.40                                     $1.00
Jelly beans                                  $1.80                                     $0.90


a. Compute the break-even sales (units) for the overallproduct, E. ?

b. How many units of each product, marshmallow bunnies and jellybeans, would be sold at the break-even point?

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