Question

?Jackie's Creamery sells? fudge, caramels, and popcorn to consumers in the local community. The manager at...

?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

Homework Answers

Answer #1

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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