Question
Peachy Goods sells 45,000 cases annually with the following costs: Variable production: $28 /case Fixed production: $12 /case Variable selling: $6 /case Fixed selling/admin: $4
Peachy Goods sells 45,000 cases annually with the following costs:
Variable production: $28/case
Fixed production: $12/case
Variable selling: $6/case
Fixed selling/admin: $4/case
Total costs per case: $50. Peachy Goods marks up prices by 30%. With a capacity for 18,000 more cases, an Italian supermarket offers 14,000 cases at $65/case. Additional shipping/selling costs are $2/case. Calculate and prepare the profit and loss statement showing the impact of accepting this order.
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
11th edition
1111571260, 978-1111571269
