1) The Jack Corporation produces candy bars and many otherconsumable food products. The Manager of Operations has calculated that thewholesale price for a box of almond candy bars is $35. Fixed costs associatedwith this candy bar line are $10,000,000 per year. a) Sales forecasts indicate that Jack Co. can sell 100,000boxes of this candy bar at a unit price of $35 per box. What is the highest variable cost per boxthat Jack can pay and still achieve a net profit of $1,600,000?b) Assume that the variable cost is $23 per box. What wouldbe the expected profit (loss) be at this level of variable cost?c) What is the break-even point in units and dollars for thealmond candy bar line?
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