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Fresh Produce Company produces and sells 30,000 cases of fruit preserves each year. The following information reflects a breakdown of its costs: (Click the icon
Fresh Produce Company produces and sells 30,000 cases of fruit preserves each year. The following information reflects a breakdown of its costs: (Click the icon to view the costs.) Fresh Produce marks up its prices 40% over full costs. It has surplus capacity to produce 25,000 more cases. A French supermarket company has offered to purchase 20,000 cases of the product at a special price of $42 per case. Fresh Produce will incur additional shipping and selling costs of $2 per case to complete this order. Requirement What will be the effect on Fresh Produce's operating income if it accepts this order? Selling price per unit $ 42 Less: Variable production cost per unit 18 Variable selling and administrative cost per unit 13 Contribution margin per unit $ 11 Now determine the effect on Fresh Produce's operating income if it accepts this order. First determine the formula then calculate the incremental profit or loss as a result of this order. (Complete all input cells. Enter a "0" for items with a zero balance. Use parentheses or minus sign to show a negative contribution margin or an incremental loss.) Incremental profit (loss)cases. A French supermarket company has offered to purchase 20.000 cases of the prod X Data table COST ITEM COST PER CASE TOTAL COSTS Variable production costs $ 18 $ 540,000 Fixed production costs 7 210,000 Variable selling costs 11 330,000 Fixed selling and administrative costs 10 300,000 Total costs $ 46 $ 1,380,000 Print DoneFresh Produce Company produces and sells 30,000 cases of fruit preserves each year. The following information reflects a breakdown of its costs: (Click the icon to view the costs.) Fresh Produce marks up its prices 40% over full costs. It has surplus capacity to produce 25,000 more cases. A French supermarket company has offered to purchase 20,000 cases of the product at a special price of $42 per case. Fresh Produce will incur additional shipping and selling costs of $2 per case to complete this order. Requirement What will be the effect on Fresh Produce's operating income if it accepts this order? Selling prion nor unit $ 42 Le 18 Fixed production costs unit 13 Fixed selling costs Incremental contribution margin Co $ 11 No Incremental cost rating income if it accepts this order. Fir Variable production costs emental profit or loss as a result of this order. (C a zero balance. Use parentheses or minus sign to sh Variable selling costs antal loss.) Incremental profit (loss
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