Jackie's Creamery sells fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 13,000 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 $13,000. The managerial accountant reported the following information: The sales mix percentage of caramel corn based upon units is

Question

Jackie's Creamery sells fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 13,000 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 $13,000. The managerial accountant reported the following information:  The sales mix percentage of caramel corn based upon units is

Quizplus · Accepted Answer

Let's assign variables to each product:

- Let F be the number of units sold for fudge. 
- Let P be the number of units sold for popcorn. 
- Let C be the number of units sold for caramels.

From the information given: 
- F + P + C = 13,000 (total units sold)
- P = 2F  (popcorn outsold fudge by a ratio of 2 to 1)
- C = P   (sales of caramels equaled sales of popcorn)

We can substitute P and C into the first equation:

F + 2F + C = 13,000
3F + C = 13,000

We don't have enough information to solve for F and C separately, but we can find the ratio of C to the total units sold:

C / (F + P + C) = C / 13,000

Substituting C = P:

C / (F + 2F + C) = C / (3F + C) = P / (3F + P) = P / (4F)

We know from the ratio given that P is twice as large as F:

P = 2F

Therefore:

C / (3F + C) = (2F) / (4F + 2F) = 2/3

Multiplying by 100% to get the sales mix percentage:

Caramel sales mix percentage = 66.67%

However, the question is asking for the caramel corn sales mix percentage, which is the percentage of total units sold that is caramel popcorn.

From the ratios given:

P = 2F 
C = P

Therefore:

F + P + C = F + 2F + 2F = 5F

The percentage of caramel corn units sold is:

C / (F + P + C) = C / (5F + C) = (2F) / (5F + 2F) = 2/7

Multiplying by 100%:

Caramel corn sales mix percentage = 28.57%

Therefore, the best choice is:

Answer: B 
 The sales mix percentage of caramel corn based upon units is 40%.

Jackie's Creamery Sells Fudge, Caramels, and Popcorn to Consumers in the Local