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Does anyone know what I might be doing wrong here? I got part A correct. Mercia Chocolates produces gourmet chocolate products with no preservatives. Any
Does anyone know what I might be doing wrong here? I got part A correct.
Mercia Chocolates produces gourmet chocolate products with no preservatives. Any production must be sold within a few days, so producing for inventory is not an option. Mercia's single plant has the capacity to make 94,000 packages of chocolate annually. Currently, Mercia sells to only two customers: Vern's Chocolates (a specialty candy store chain) and Mega Stores (a chain of department stores). Vern's orders 53,800 packages and Mega Stores orders 19,000 packages annually. Variable manufacturing costs are $18 per package, and annual fixed manufacturing costs are $570,000. The gourmet chocolate business has two seasons, holidays and non-holidays. The holiday season lasts exactly four months and the non-holiday season lasts eight months. Vern's orders the same amount each month, so Vern's orders 17,400 packages during the holidays and 36,400 packages in the non-holiday season. Mega Stores only carries Mercia's chocolates during the holidays. Required: a. Calculate the product cost for each season with excess capacity costs assigned to season in which it is incurred. b. Calculate the product cost for each season with excess capacity costs assigned to the season requiring it. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the product cost for each season with excess capacity costs assigned to the season requiring it. (Round your intermediate calculations and final answers to 2 decimal places.) Non-holiday Holiday Product Cost $ 23.22 per package $ 28.44 per packageStep by Step Solution
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