# 1) The Jack Corporation produces candy bars and many otherco

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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