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Ginger Snacks : Produces 50,000 cases/year Variable production costs: $18 /case Fixed production costs: $8 /case Variable selling costs: $7 /case Fixed selling/admin costs: $4

Ginger Snacks:

Produces 50,000 cases/year

Variable production costs: $18/case

Fixed production costs: $8/case

Variable selling costs: $7/case

Fixed selling/admin costs: $4/case

Total cost: $37/case

Marks up prices 35%. Surplus capacity: 15,000 cases. Offer: 10,000 cases at $45/case. Additional costs: $3/case. Prepare a comprehensive break-even analysis for this order.

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