Candyland, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60….


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Candyland, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60…. 1 answer below » Candyland, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans                                       $0.70 Sugar                                    & View complete question » Candyland, Inc., produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans                                       $0.70 Sugar                                            0.35 Butter                                           1.85 Other ingredients                     0.34 Box, packing material              0.76 Selling commission                  0.20 Fixed overhead cost is $32,300 per year. Fixed selling and administrative costs are $12,500 per year. Candyland sold 35,000 boxes last year. Required 1.    What is the contribution margin per unit for a box of praline fudge? What is the contribution margin ratio? 2.    How many boxes must be sold to break even? What is the break-even sales revenue? 3.    What was Candyland’s operating income last year? 4.    What was the margin of safety? 5.    Suppose that Candyland, Inc., raises the price to $6.20 per box but anticipates a sales drop to 31,500 boxes. What will the new break-even point in units be? Should Candyland raise the price? Explain. View less » Jan 06 2016 01:06 PM

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