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Coconut Juice Delights produces and sells 75,000 cases annually. The cost breakdown: COST ITEM COSTS PER CASE TOTAL COSTS Variable production costs $22 $1,650,000 Fixed

Coconut Juice Delights produces and sells 75,000 cases annually. The cost breakdown:

COST ITEM

COSTS PER CASE

TOTAL COSTS

Variable production costs

$22

$1,650,000

Fixed production costs

10

750,000

Variable selling costs

7

525,000

Fixed selling and admin costs

5

375,000

Total costs

$44

$3,300,000

Coconut Juice marks up prices 30% over full costs. It has the capacity to produce 20,000 more cases. A French distributor has offered to purchase 18,000 cases at $60 per case. Additional shipping and selling costs are $4 per case. Prepare the income statement showing the impact of accepting this order.

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