Popcorn Inc

question 150

Essay

Popcorn Inc.currently sells plain popcorn at the ballpark.During a typical month the stand reports a profit of $18,000 with sales of $100,000 and fixed costs of $42,000 and variable costs of $0.64 per box.Next year the company plans to start selling candy-coated popcorn for $3 a box.The candy-coated popcorn will have a variable cost of $0.72.The new equipment and personnel to handle the popcorn will increase monthly fixed costs by $17,616.Two boxes of candy-coated popcorn are expected to sell for every box of plain popcorn.Required:
a.Determine the monthly break-even sales in units before adding the candy-coated popcorn product.
b.Determine the monthly break-even sales in units of each product during the first year of candy-coated popcorn sales assuming a constant sales mix.

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Definitions:

Understood

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Final Stage

The last phase in a process or lifecycle where objectives are finalized or outcomes are fully realized.

Team's Effectiveness

The degree to which a team is able to meet its objectives, accomplish given tasks, and achieve its goals in an efficient manner.

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The granting of power, resources, and autonomy to a team, enabling members to take collective decisions and act towards common goals effectively.