Kettle! is a specialty popcorn store. It offers two varieties of popcorn: plain and flavored....

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Accounting

Kettle! is a specialty popcorn store. It offers two varieties of popcorn: plain and flavored. The flavors range from
Caramel Popcorn to Dark Chocolate Drizzled Popcorn to White Cheddar Popcorn. The plain popcorn sells for $2.50
per box and costs $0.70 per box to make. The flavored popcorn sells for $4.15 per box and costs $2.60 per box to
make. Kettle! has fixed costs per month of $3,360. Kettle! sells 1 box of plain popcorn for every 4 boxes of flavored
popcorn. How many boxes of plain popcorn and how many boxes of flavored popcorn must Kettle! sell each month to
break even?
First identify the formula to compute the sales in units at various levels of operating income using the contribution
margin approach. (Abbreviations used: Avg. = average, and CM= contribution margin.)
Determine the weighted-average contribution margin per unit by identifying the formula labels and then completing
the calculations step by step.
Dedt
Weighted average contribution margin per unit
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