Question
I need to check my work. Thanks for your help! Situation #1: Georgia Peaches LLC grows peach trees and harvests peaches. They can sell off
I need to check my work. Thanks for your help!
Situation #1:
Georgia Peaches LLC grows peach trees and harvests peaches. They can sell off the peaches by the pound after harvest, or they can further process the peaches into jam, cider, or salsa. Because of economies of scale, they have found that they would do the entire harvest as one of the four options (whole, jam, cider, or salsa); they do not have nor are able to invest in the equipment and resources needed to perform a combination of goods at this time. The data related to a typical harvest is as follows:
\fPer Unit 5,000 Units Direct Materials S 1.37 S 6,850 Direct Labor S 0.82 S 4,100 Variable Overhead S 0.63 S 3,150 Supervisor's Salary S 0.42 S 2,100 Depreciation of Special Equipment S 0.37 S 1,850 Allocated General Overhead S 0.72 S 3,600 Total Cost S 4.33 S 21,650Step by Step Solution
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