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Please provide detailed answer, thanks. Da Lat Vinery (DLV) has a monthly capacity to fill 300,000 bottles with high quality red wine. The average selling

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Please provide detailed answer, thanks.

Da Lat Vinery (DLV) has a monthly capacity to fill 300,000 bottles with high quality red wine. The average selling price for a bottle is 10 per unit. In the previous year OLV had average sales of 210,000 units per month. The estimated costs and revenues for 210,000 bottles) are as follows: Assume a spare capacity in the foreseeable future (capacity =300,000 units and demand =210,000 units) and that an opportunity for a contract of additional 80,000 bottles per months at sales price of $7 per unit emerges involving special production and selling costs of 1 per unit. No other opportunities exist. On the other hand, if the contract is not accepted, the Company could reduce direct labour by 20%, manufacturing non- variable costs by 20,000 and marketing costs by 10,000 per month. Unutilized facilities could be rented out at 15,000 per month. Da Lat Vinery (DLV) has a monthly capacity to fill 300,000 bottles with high quality red wine. The average selling price for a bottle is 10 per unit. In the previous year OLV had average sales of 210,000 units per month. The estimated costs and revenues for 210,000 bottles) are as follows: Assume a spare capacity in the foreseeable future (capacity =300,000 units and demand =210,000 units) and that an opportunity for a contract of additional 80,000 bottles per months at sales price of $7 per unit emerges involving special production and selling costs of 1 per unit. No other opportunities exist. On the other hand, if the contract is not accepted, the Company could reduce direct labour by 20%, manufacturing non- variable costs by 20,000 and marketing costs by 10,000 per month. Unutilized facilities could be rented out at 15,000 per month

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