Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pinches Ltd makes cooking oil which sells at 20 a bottle. Variable costs are 12 a bottle. The business is working at full capacity. What

Pinches Ltd makes cooking oil which sells at 20 a bottle. Variable costs are 12 a bottle. The business is working at full capacity. What is the minimum price at which this product could be sold without making a loss for an order of 12,000 bottles? To fulfil this additional order, the company would incur additional fixed costs of 50,000 and variable costs of 70,000. You may assume a linear relationship between costs and selling price.

A. 240,000 B. 120,000 C. 96,000 D. 216,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Howard F. Stettler

3rd Edition

0130521183, 9780130521187

More Books

Students also viewed these Accounting questions