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please show work! thanks! Brand Bleach Company manufactures a bleach used for both domestic and industrial purposes. Currently the company sells its entire monthly output
please show work! thanks!
Brand Bleach Company manufactures a bleach used for both domestic and industrial purposes. Currently the company sells its entire monthly output of 100,000 gallons to other companies. The customers that purchase the bleach then repackage the bleach and sell it to retailers and end users. The following information is available regarding the manufacture and sale of the bleach: Selling Price per Gallon $0.60 Variable Costs per Gallon: Direct Materials $0.11 Direct Labor $0.18 $0.05 Variable Overhead Fixed Costs per Period: Fixed Overhead Fixed Selling and Admin. $7,000 $14,000 Brand Bleach has been exploring re-packaging all 100,000 gallons and then selling the bleach directly to the retailers and end users themselves. The re-packaged bleach could be sold for $1.50 per gallon. The additional costs associated with further processing and re-packaging the bleach would be: Direct Materials per Gallon $0.24 Direct Labor per Gallon $0.10 Variable Overhead per Gallon $0.16 Fixed Overhead per period $8,000 Fixed Selling and Admin per period $2,800 Brand Bleach should (type sell now or process further) because net income would increase by (type in your dollar amount of change)Step by Step Solution
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