Coco Corp. manufactures boxes of chocolate candies. Its basic cost and profit information is summarized below: • Selling price per box: $12 • Variable cost per box: $6 • Fixed cost per year: $33,000 The company has the capacity to manufacture up to 100,000 boxes of its candy per year. a) Determine the net income at a volume of 30% of capacity. b) Determine the sales volume in dollars to generate a net income of $60,000. c) Determine the break-even point in units if the selling price is increased by 10%.

Coco Corp. manufactures boxes of chocolate candies. Its basic cost and profit information is summarized below: • Selling price per box: $12 • Variable cost per box: $6 • Fixed cost per year: $33,000 The company has the capacity to manufacture up to 100,000 boxes of its candy per year. a) Determine the net income at a volume of 30% of capacity. b) Determine the sales volume in dollars to generate a net income of $60,000. c) Determine the break-even point in units if the selling price is increased by 10%.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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