Candy Corp. produces and sells two products. During the most recent month,
Twix sales were $450,000 and its variable expenses were $250,000. Rolo sales
were $500,000 and its variable expenses were $300,000. The company's fixed
expenses were $150,000.
Required:
A. Prepare a contribution format income statement for Candy Corp. (5 PTS)
B. Determine the overall break-even point for Candy. Show your work! (5 PTS)
C. If the sales mix shifts toward Twix with no change in total sales, what will
happen to the break-even point for the company? Explain. (3 PTS)