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In: Accounting

A Candy Company plans to sell 3,000 candy bars with the following information:                  Financial Information        &nbs

A Candy Company plans to sell 3,000 candy bars with the following information:

                 Financial Information                                                                  

         Selling price per candy bar.........................................................................               $1.00

         Variable cost of goods sold per candy bar...............................................               $ .40

         Fixed manufacturing cost per year.............................................................           $12,000

Variable cost of goods sold per candy bar....................................................               $ .30

         Variable selling and administrative expense per candy bar......................               $ .05

         Fixed selling and administrative expense..................................................            $ 4,000

Instructions: Using Excel, prepare the following

  1. CVP formatted income statement
  2. Break even point in units
  3. Break even point in dollars
  4. Margin of safety in dollars
  5. Margin of safety ratio

display all the formulas

Solutions

Expert Solution

If you have any doubts please comment on the answer.

ekkarill92 answered 2 years ago
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