Reference no: EM132533480
The Dark Chocolate Division of Yummy Snacks, Inc. had the following operating results last year:
Sales (150,000 pounds of chocolate) $60,000
Variable expenses 37,500
Contribution margin 22,500
Fixed expenses 12,000
Profit$10,500
Question 1: 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?
Multiple Choice
Option 1: $0.40 per pound
Option 2: $0.08 per pound
Option 3: $0.15 per pound
Option 4: $0.25 per pound
Option 5: $0.30 per pound
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