Question
Berry Juice Delights : Produces 50,000 cases/year Variable production costs: $18 /case Fixed production costs: $9 /case Variable selling costs: $6 /case Fixed selling/admin costs:
Berry Juice Delights:
Produces 50,000 cases/year
Variable production costs: $18/case
Fixed production costs: $9/case
Variable selling costs: $6/case
Fixed selling/admin costs: $4/case
Total cost: $37/case
Marks up prices 35%. Surplus capacity: 15,000 cases. Offer: 12,000 cases at $50/case. Additional costs: $4/case. Prepare a comprehensive break-even analysis for this order.
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1305631540, 1305631544, 1305250907, 978-1305250901
