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Andrews [41]
3 years ago
10

The Dark Chocolate Division of Yummy Snacks, Inc. had the following operating results last year: Sales (150,000 pounds of chocol

ate) $ 60,000 Variable expenses 37,500 Contribution margin 22,500 Fixed expenses 12,000 Profit $ 10,500 Assume that the Dark Chocolate Division is currently operating at its capacity of 150,000 pounds of chocolate. Also assume again that the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from Dark Chocolate. Under these conditions, what amount per pound of chocolate would Dark Chocolate have to charge Peanut Butter in order to maintain its current profit
Business
1 answer:
Zanzabum3 years ago
6 0

Answer:

the amount per pound of chocolate that should be charged is $0.40 per pound

Explanation:

The computation of the amount per pound that should be charged is shown below:

= Sales revenue ÷ units

= $60,000 ÷ 150,000 units

= $0.40

Hence, the amount per pound of chocolate that should be charged is $0.40 per pound

We simply applied the above formula so that the correct amount could come by dividing the units from the sales revenue

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Read 2 more answers
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4 0
3 years ago
Turner Corporation acquired two inventory items at a lump-sum cost of $100,000. The acquisition included 3,000 units of product
inessss [21]

Answer:

The amount of gross profit Turner Corporation should recognize is $20,000.

Explanation:

The following are given in the question:

Lump-sum cost = $100,000

Units of LF acquired = 3,000

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LF price per unit = $30

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Unit of LF sold = 1,000

Therefore, we have:

Share of LF in the Lump-sum cost = (Units of LF acquired / (Units of LF acquired + Units of 1B acquired)) * Lump-sum cost = (3,000 / (3,000 + 7,000)) * $100,000 = $30,000

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LF cost of goods sold = Unit of LF sold * LF cost per unit = 1,000 * $10 = $10,000

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Therefore, the amount of gross profit Turner Corporation should recognize is $20,000.

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