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Compute the break-even sales

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Question - 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

Jellybeans $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 jellybeans, would be sold at the break-even point?

Reference no: EM131793496

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