Managerial Accounting

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Using Break-Even Point for Multiple Products: JJF


Jumpin' Jackie Foods makes and sells handmade candies. The monthly fixed costs run about \$5,000, and Jumpin' Jackie can break its products into three major categories. Based on the following information, determine whether Jumpin' Jackie has broken even, if she is operating at a loss or profit, and by how much.

Monthly fixed costs: \$5,000
Products: 3 categories

Ganache-filled treats: Sales Price: \$2.00, Variable Costs: \$1.75
Chocolate-covered marshmallows: Sales Price: \$0.50, Variable Costs: \$0.15
Marzipan flowers: Sales Price: \$4.00, Variable Costs: \$3.00

In the current month, there were 3500 Ganache treats, 4000 marshmallows, and 730 marzipan flowers sold.

In the current month, Jumpin' Jackie

at least break even. Jumpin' Jackie had a