Question
Grapefruit Juice Delights : Produces 75,000 cases/year Variable production costs: $20 /case Fixed production costs: $9 /case Variable selling costs: $7 /case Fixed selling/admin costs:
Grapefruit Juice Delights:
Produces 75,000 cases/year
Variable production costs: $20/case
Fixed production costs: $9/case
Variable selling costs: $7/case
Fixed selling/admin costs: $5/case
Total cost: $41/case
Marks up prices 30%. Surplus capacity: 20,000 cases. Offer: 15,000 cases at $55/case. Additional costs: $4/case. Prepare a comprehensive break-even analysis for this order.
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Principles of Accounting
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
12th edition
978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985
