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Banana Juice Co. sells 90,000 cases annually with the following costs: Variable production: $21 /case Fixed production: $10 /case Variable selling: $7 /case Fixed selling/admin:
Banana Juice Co. sells 90,000 cases annually with the following costs:
Variable production: $21/case
Fixed production: $10/case
Variable selling: $7/case
Fixed selling/admin: $5/case
Total costs per case: $43. Banana Juice marks up prices by 30%. With a capacity for 25,000 more cases, a French supermarket offers 20,000 cases at $55/case. Additional shipping/selling costs are $4/case. Calculate and prepare the profit and loss statement showing the impact of accepting this order.
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