Question
Mango Juice Delights : Produces 60,000 cases/year Variable production costs: $20 /case Fixed production costs: $9 /case Variable selling costs: $6 /case Fixed selling/admin costs:
Mango Juice Delights:
Produces 60,000 cases/year
Variable production costs: $20/case
Fixed production costs: $9/case
Variable selling costs: $6/case
Fixed selling/admin costs: $5/case
Total cost: $40/case
Marks up prices 35%. Surplus capacity: 15,000 cases. Offer: 12,000 cases at $50/case. Additional costs: $3.50/case. Prepare a comprehensive break-even analysis for this order.
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Operations Management Managing Global Supply Chains
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
1st edition
1506302935, 1506302939, 978-1506302935
