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Problem #2 The Milk Inc. has the following operating results for making 150,000 pounds of chocolate: $60,000 37,500 22,500 12,000 Sales Variable expense Contribution margin Fixed Expenses Net operating Income 10,500 The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Inc. Under these conditions, what amount per pound of chocolate would The Milk Inc. have to charge the Peanut Butter Inc. for this special order in order to maintain its current profit? Round your answer to two decimals.

Problem #2 The Milk Inc. has the following operating results for making 150,000 pounds of chocolate: $60,000 37,500 22,500 12,000 Sales Variable expense Contribution margin Fixed Expenses Net operating Income 10,500 The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Inc. Under these conditions, what amount per pound of chocolate would The Milk Inc. have to charge the Peanut Butter Inc. for this special order in order to maintain its current profit? Round your answer to two decimals.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject:- accounting 

Problem #2 The Milk Inc. has the following operating results for making 150,000 pounds of chocolate: $60,000 37,500 22,500 Fixed Expenses 12,000 Net operating Income 10,500 Sales Variable expense Contribution margin The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Inc. Under these conditions, what amount per pound of chocolate would The Milk Inc. have to charge the Peanut Butter Inc. for this special order in order to maintain its current profit? Round your answer to two decimals.
Transcribed Image Text:Problem #2 The Milk Inc. has the following operating results for making 150,000 pounds of chocolate: $60,000 37,500 22,500 Fixed Expenses 12,000 Net operating Income 10,500 Sales Variable expense Contribution margin The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Inc. Under these conditions, what amount per pound of chocolate would The Milk Inc. have to charge the Peanut Butter Inc. for this special order in order to maintain its current profit? Round your answer to two decimals.
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