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2. Special Order Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12 each Variable manufacturing costs are $6
2. Special Order Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12 each Variable manufacturing costs are $6 per gallon. Fixed costs total $3,000 per day. Regular demand has been 750 gallons per day. Clearwater has the capacigty to sell a maximum of 800 gallons per day REQUIRED: A. What is the total manufacturing cost per gallon? B. A bus loaded with 40 senior citizens stops by at closing time and the tour director offers to purchase 40 gallons for $7.50 per gallon. Clearwater, believing that they would incur a loss of $2.50 per gallon, refuses the special order. Should the special order of 40 gallons be accepted? Was Clearwater correct about losing $2.50 per gallon? Why or why not? A fund-raising organization has offered to make a one-time purchase of 300 gallons of wine from Clearwater for $7.50 per gallon. Should Clearwater accept the special order of 300 gallons? Why or why not? C. 2. Special Order Clearwater Company operates a wine outlet in a tourist area. One gallon bottles sell for $12 each Variable manufacturing costs are $6 per gallon. Fixed costs total $3,000 per day. Regular demand has been 750 gallons per day. Clearwater has the capacigty to sell a maximum of 800 gallons per day REQUIRED: A. What is the total manufacturing cost per gallon? B. A bus loaded with 40 senior citizens stops by at closing time and the tour director offers to purchase 40 gallons for $7.50 per gallon. Clearwater, believing that they would incur a loss of $2.50 per gallon, refuses the special order. Should the special order of 40 gallons be accepted? Was Clearwater correct about losing $2.50 per gallon? Why or why not? A fund-raising organization has offered to make a one-time purchase of 300 gallons of wine from Clearwater for $7.50 per gallon. Should Clearwater accept the special order of 300 gallons? Why or why not? C
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