Question
Avocado Delights : Produces 70,000 cases annually Variable production costs: $22 /case Fixed production costs: $10 /case Variable selling costs: $7 /case Fixed selling/admin costs:
Avocado Delights:
Produces 70,000 cases annually
Variable production costs: $22/case
Fixed production costs: $10/case
Variable selling costs: $7/case
Fixed selling/admin costs: $4/case
Total costs: $43/case
Marks up prices 25%. Capacity: 20,000 more cases. Italian market offers 15,000 cases at $55/case. Extra costs: $4/case. Prepare the statement of cash flows reflecting this transaction.
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Principles of Accounting
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
12th edition
978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985
