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The Dark Chocolate Division of Yummy Snacks, Inc Assume That the Dark Chocolate Division Is Currently Operating at Following

Question 1

Multiple Choice

The Dark Chocolate Division of Yummy Snacks, Inc. had the following operating results last year:  Sales (150,000 pounds of chocolate)  $60,000 Variable expenses 37,500 Contribution margin 22,500 Fixed expenses 12,000 Profit $10,500\begin{array} { l r } \text { Sales (150,000 pounds of chocolate) } & \$ 60,000 \\\text { Variable expenses } & 37,500 \\\text { Contribution margin } & 22,500 \\\text { Fixed expenses } & 12,000 \\\text { Profit } & \$ 10,500\end{array} Assume that the Dark Chocolate Division is currently operating at its capacity of 200,000 pounds of chocolate. Also assume again that the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from Dark Chocolate. Under these conditions, what amount per pound of chocolate would Dark Chocolate have to charge Peanut Butter in order to maintain its current
Profit?


A) $0.25 per pound
B) $0.08 per pound
C) $0.30 per pound
D) $0.15 per pound
E) $0.40 per pound

Correct Answer:

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