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Kiwi Treats produces 25,000 cases annually with costs: Variable production: $16 /case Fixed production: $6 /case Variable selling: $4 /case Fixed selling/admin: $2 /case Total
Kiwi Treats produces 25,000 cases annually with costs:
Variable production: $16/case
Fixed production: $6/case
Variable selling: $4/case
Fixed selling/admin: $2/case
Total costs: $28 per case. Kiwi marks up 25%. With a surplus of 8,000 cases, a South African store offers 6,000 cases at $35/case. Additional costs: $2/case. Calculate the effect on retained earnings if the order is accepted.
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