Chocolate Extreme sells both hard candy and chocolate candy. The current sales mix is 2 units of hard candy for every 3 units of chocolate candy. Hard candy has a contribution margin of $4 per unit, while chocolate candy has a contribution margin of $2 per unit. If fixed cost are $420,000 what are the total units sold at the break-even point (rounded) ?
A) 56,000 units of hard candy and 84,000 units of chocolate candy
B) 60,000 units of hard candy and 90,000 units of chocolate candy
C) 67,200 units of hard candy and 100,800 units of chocolate candy
D) 72,000 units of hard candy and 108,000 units of chocolate candy
Correct Answer:
Verified
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