question archive The Grandma Corporation manufactures two products – cookies and candy

The Grandma Corporation manufactures two products – cookies and candy

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The Grandma Corporation manufactures two products – cookies and candy. Cookies have a contribution margin of $4 per box, and candy has a contribution margin of $5 per bag. Grandma’s total fixed cost is currently $450,000. Grandma expects to sell two boxes of cookies for every three bags of candy sold. Boxes of cookies and bags of candy each sell for $10.(2) At the current product mix, what total dollar sales volume is required for Grandma to earn a pretax income (profit) of $217,000?

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