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Blueberry Snacks produces 25,000 cases annually. Each case costs: Variable production: $19 Fixed production: $7 Variable selling: $5 Fixed selling/admin: $3 Total cost: $34 per
Blueberry Snacks produces 25,000 cases annually. Each case costs:
Variable production: $19
Fixed production: $7
Variable selling: $5
Fixed selling/admin: $3
Total cost: $34 per case
Blueberry Snacks marks up prices by 35% over full costs. The company can produce an additional 8,000 cases. An Australian retailer has offered to buy 6,000 cases at $45 per case with additional shipping and selling costs of $3 per case. Calculate the effect on Blueberry's gross profit if it accepts this order.
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