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?Jackie\'s Creamery sells? fudge, caramels, and popcorn to consumers in the loca

ID: 2403780 • Letter: #

Question

?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

Explanation / Answer

Let units sold for Caramels be x and for Popcorns be y

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,

10000


Particulars Fudge Caramels Popcorns Units sold 5y/9 x y Selling Price 9 5 10 Sales 10y/2 = 5y 5x 10y
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