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Here a scenario question, if ice maker is selling ice cream to as followed 25% of capacity to A Supermart at markup of 80% on
Here a scenario question, if ice maker is selling ice cream to as followed
- 25% of capacity to A Supermart at markup of 80% on imputed fixed cost and labour cost
- 30% of capacity to B Supermart at markup of 80% on imputed fixed cost and labour cost and ingredient cost
- 40% of capacity to direct sales of customers at markup of 80% on imputed fixed cost and labour cost and ingredient cost
The following is the given information on ice maker
Ice cream revenue = $2,760,000
Variable Cost for Ingredient = $350,000
Variable Cost for Labour = $900,000
Contribution = $1,510,000
Imputed fixed cost = $500,000
Can anyone teach me how to allocate as I have tried 1.8(fixed cost +variable cost) = 3,150,000. which doesn't tie to $2,760,000, hence, i couldn't allocate to A, B, and direct customer. that is all the information from the question.
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