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Citrus Delights : Produces 55,000 cases/year Variable production costs: $24 /case Fixed production costs: $10 /case Variable selling costs: $6 /case Fixed selling/admin costs: $4

Citrus Delights:

Produces 55,000 cases/year

Variable production costs: $24/case

Fixed production costs: $10/case

Variable selling costs: $6/case

Fixed selling/admin costs: $4/case

Total cost: $44/case

Marks up prices 20%. Surplus capacity: 12,000 cases. Offer: 10,000 cases at $50/case. Additional costs: $3.50/case. Prepare a comprehensive break-even analysis for this order.

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