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Problem #1 Davidson Company makes and sells bottles of soda to grocery stores. Davidson's only plant can produce up to 12 million bottles of soda
Problem #1 Davidson Company makes and sells bottles of soda to grocery stores. Davidson's only plant can produce up to 12 million bottles of soda per year. Current annual production is 10 million bottles. Fixed manufacturing, selling and administrative costs total $15 million per year. The variable cost of making and selling each bottle of soda is $6.00. Stockholders expect a 15% annual return on the company's $40 million of assets. Requirements: 1) What is Davidson's current total cost of making and selling 10 million bottles of soda ? What is the current cost per bottle of soda
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