Jackie's Snacks Sells Fudge, Caramels, and Popcorn

question 107

Multiple Choice

Jackie's Snacks sells fudge, caramels, and popcorn. It sold 12,000 units last year. Popcorn outsold fudge by a margin of 2 to 1. Sales of caramels were the same as sales of popcorn. Fixed costs for Jackie's Snacks are $14,000. Additional information follows: The breakeven sales volume in units for Jackie's Snacks is

• A)2,800.
• B)6,000.
• C)7,000.
• D)1,250.

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person or bearer at a fixed or determinable future time.

Past-Due Account

An account that has not been paid by the due date, typically relating to receivables or loans.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or is settled.

Interest Payment

The payment made by a borrower to a lender as compensation for the use of borrowed money.