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​Jackie's Snacks sells​ fudge, caramels, and popcorn. It sold​ 12,000 units last year. Popcorn outsold fudge...

​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: Product Unit Sales Prices Unit Variable Cost Fudge ​$5.00 ​$4.00 Caramels ​$8.00 ​$5.00 Popcorn ​$6.00 ​$4.50 The breakeven sales volume in units for​ Jackie's Snacks is A. ​6,000. B. ​7,000. C. ​1,250. D. ​2,800.

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FUDGE CARAMELS POPCORN
Sale Price $5 $8 $6
Variable Cost $4 $5 $4.50
Contribution $1 $3 $1.50

Sales Mix

Particular FUDGE CARAMEL POPCORN Total
Ratio 1 2 2 5
Units in ratio 12,000/5 (12,000/5) *2 (12,000/5) *2 12,000
Unit sold 2,400 4,800 4,800 12,000
Contribution in ratio 1*1 3*2 1.50*2
1 6 3 10

B.E.P.= Fixed Cost/ Contribution in sales mix

=$14,000/ 10

=1,400

Fudge 1,400 1,400
Caramel 1,400*2 2,800
Popcorn 1,400*2 2,800
Total Break -even sales in units 7,000

Hence, the correct option is B. 7,000.

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