?Jackie's Creamery sells? fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 10 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 $ 11 comma 000. The managerial accountant reported the following? information: Product Unit Sales Prices Unit Variable Cost Fudge $ 9 $ 7 Caramels $ 5 $ 3 Popcorn $ 10 $ 8 The sales mix percentage of caramel corn based upon units is
Let units sold for Caramels be x and for Popcorns be y
Particulars | Fudge | Caramels | Popcorns |
Units sold | 5y/9 | x | y |
Selling Price | 9 | 5 | 10 |
Sales | 10y/2 = 5y | 5x | 10y |
Equation 1 5x=10y ; x=2y
Equation 2 5y/9 + x + y = 10000
5y + 9x + 9y = 90000
5y + 18y + 9y = 90000
32y = 90000
y = 2812.50 units
Hence,
Particulars | Fudge | Caramels | Popcorns | Total |
Units Sold | 5y/9 = 1562.50 | x = 2y = 5625 | y = 2812.50 |
10000 |
Sales mix | 1562.50/10000 = 15.625% | 5625/10000= 56.25% | 2812.50/10000= 28.125% | 100.000% |
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