Question
Grapefruit Delights : Produces 60,000 cases/year Variable production costs: $21 /case Fixed production costs: $9 /case Variable selling costs: $6 /case Fixed selling/admin costs: $4
Grapefruit Delights:
Produces 60,000 cases/year
Variable production costs: $21/case
Fixed production costs: $9/case
Variable selling costs: $6/case
Fixed selling/admin costs: $4/case
Total cost: $40/case
Marks up prices 30%. Surplus capacity: 18,000 cases. Offer: 15,000 cases at $55/case. Additional costs: $3.50/case. Prepare a comprehensive break-even analysis for this order.
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
