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Blueberry Foods manufactures and sells 25,000 cases of snacks each year. The variable production cost is $18 per case, fixed production cost is $6 per
- Blueberry Foods manufactures and sells 25,000 cases of snacks each year. The variable production cost is $18 per case, fixed production cost is $6 per case, variable selling cost is $4 per case, and fixed selling and administrative cost is $2 per case. Total annual costs amount to $750,000. Blueberry marks up its prices 50% over full costs. The company can produce an additional 10,000 cases. A Japanese supermarket has offered to buy 8,000 cases at a special price of $35 per case. Additional shipping and selling costs will be $3 per case. Calculate the effect on Blueberry's operating income if it accepts this order.
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