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 |
|
Jelly beans |
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 jelly beans, would be sold at the break even point?