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Banana Treats sells 40,000 cases annually with the following costs: Variable production: $22 /case Fixed production: $10 /case Variable selling: $7 /case Fixed selling/admin: $4
Banana Treats sells 40,000 cases annually with the following costs:
Variable production: $22/case
Fixed production: $10/case
Variable selling: $7/case
Fixed selling/admin: $4/case
Total costs per case: $43. Banana Treats marks up prices by 30%. With a capacity for 15,000 more cases, a Dutch supermarket offers 12,000 cases at $50/case. Additional shipping/selling costs are $3/case. Calculate and prepare the profit and loss statement showing the impact of accepting this order.
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