Question

Jackie's Creamery sells​ fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 12 comma 000 units last year. Popcorn outsold fudge by a ratio of 2 to 1. Sales of caramels equaled sales of popcorn. Total fixed costs for​ Jackie's Creamery are $ 14 comma 000. The managerial accountant reported the following​ information: Product Unit Sales Prices Unit Variable Cost Fudge $ 10.00 $ 5.00 Caramels $ 4.00 $ 3.00 Popcorn $ 7.00 $ 3.00 The sales mix percentage of caramel corn based upon units is___________.

Answer 1

Answer:

4,800 units of caramel

Explanation:

sales mix:

caramel sales is the same as popcorn and popcorn sales twice as fudge thus:

if popcorn 2

and caramels equals popcorn then 2 as well leaving:

popcorn:caramels:fudge

    2       :      2      :      1

 40%     :   40%    :    20%

If the company made sales for 12,000 then:

12,000 x 40% = 4,800 units of caramel