Business, 26.10.2021 02:40 FireBlits8950
Neutron Food Products produces two different types of snack bar: Granola bars and
carob bars. Neutron sells these bars by the case to local retail outlets. Granola bars
sell for $30 a case whereas carob bars sell for $20 a case. The projected income
statement for the coming three months is as follows:
Neutron Food Products
Projected Income Statement
For the Quarter Ended 31 March 20X3
Sales $ 600,000
Less: Variable costs 400,000
Contribution margin 200,000
Less: Fixed costs 120,000
Net income $ 80,000
Neutron’s owner-manager expects granola bars to generate 60 per cent of the
projected sales revenue. Carob bars will account for the remaining 40 per cent.
Granola bars will also be responsible for 60 per cent of the variable costs incurred.
All of the fixed costs are common to both products.
Req
Answers: 3
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Neutron Food Products produces two different types of snack bar: Granola bars and
carob bars. Neut...
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