Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000
1 answer:
You might be interested in
Answer:
The break-even level of sales is equal to 3372.64 pounds.
Explanation:
The quantity of fish sold per month is 3,200 pounds.
The price of fish is $2.90/pound.
The variable cost per pound is $2.22.
The monthly required return is 1.2%.
Contribution per unit will be
=Selling Price-Variable Cost
=$2.9-$2.22
=$0.68 per unit
Loss on account of changing to net 30 policy
=Quantity*Selling Price*required return
=Quantity*$2.9*1.2%
To break even, excess Contribution should be equal to loss on policy change
or,
Here, we assume quantity to be X
(X-3200)*$0.68 = X*$2.9*1.2%
(X-3200)*19.54= X
18.54X=$62,528.74
X=
X=3372.64 pounds