Question
Fig Treats produces 80,000 cases annually with costs: Variable production: $20 /case Fixed production: $9 /case Variable selling: $6 /case Fixed selling/admin: $5 /case Total
Fig Treats produces 80,000 cases annually with costs:
Variable production: $20/case
Fixed production: $9/case
Variable selling: $6/case
Fixed selling/admin: $5/case
Total costs: $40 per case. Fig Treats marks up 25%. With a surplus of 15,000 cases, a South Korean store offers 12,000 cases at $55/case. Additional costs: $3/case. Calculate the effect on retained earnings if the order is accepted.
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Managerial Accounting
Authors: Charles E. Davis, Elizabeth Davis
2nd edition
1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445
