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Peach Juice Delights produces and sells 70,000 cases annually. The cost breakdown: COST ITEM COSTS PER CASE TOTAL COSTS Variable production costs $20 $1,400,000 Fixed

Peach Juice Delights produces and sells 70,000 cases annually. The cost breakdown:

COST ITEM

COSTS PER CASE

TOTAL COSTS

Variable production costs

$20

$1,400,000

Fixed production costs

8

560,000

Variable selling costs

6

420,000

Fixed selling and admin costs

4

280,000

Total costs

$38

$2,660,000

Peach Juice Delights marks up prices 30% over full costs. It has the capacity to produce 20,000 more cases. A French distributor has offered to purchase 15,000 cases at $50 per case. Additional shipping and selling costs are $4 per case. Prepare the income statement showing the impact of accepting this order.

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