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Compute the break even sales for the overall product

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Reference no: EM131803090

Problem - 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?

Reference no: EM131803090

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