Question
Mango Juice Delights manufactures 50,000 cases per year with costs: Variable production: $20 /case Fixed production: $9 /case Variable selling: $7 /case Fixed selling/admin: $5
Mango Juice Delights manufactures 50,000 cases per year with costs:
Variable production: $20/case
Fixed production: $9/case
Variable selling: $7/case
Fixed selling/admin: $5/case
Total costs: $41 per case. Mango Juice marks up prices 30%. It can produce an extra 15,000 cases. A British company offers to buy 12,000 cases at $55/case with additional costs of $4/case. Determine the change in net income if the order is accepted.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
