Question
Peach Juice Delights sells 70,000 cases annually with the following costs: Variable production: $22 /case Fixed production: $10 /case Variable selling: $7 /case Fixed selling/admin:
Peach Juice Delights sells 70,000 cases annually with the following costs:
Variable production: $22/case
Fixed production: $10/case
Variable selling: $7/case
Fixed selling/admin: $5/case
Total costs per case: $44. Peach Juice marks up prices by 25%. With a capacity for 20,000 more cases, a French supermarket offers 18,000 cases at $60/case. Additional shipping/selling costs are $4/case. Calculate and prepare the profit and loss statement showing the impact of accepting this order.
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Accounting What the Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
11th edition
1259535312, 978-1259535314
