Problem 10-78 (Algo) Assigning Capacity Costs: Seasonality (LO 10-6) Remington Agricultural Products (RAP) produces organic cider with no preservatives. Any production must be sold within a few days, so producing for inventory is not an option. RAP's single plant has the capacity to make 73,440 cases of cider annually. Currently, RAP sells to only two customers: Savery's Organic Produce (SOP) and Griswold Food Stores (a chain of grocery stores). SOP orders 36.720 cases and Griswold orders 12.240 cases annually. Variable manufacturing costs are $19 per case, and annual fixed manufacturing costs are $881,280 The organic cider business has two seasons, holidays and nonholidays. The holiday season lasts exactly four months (although it feels longer), and the nonholiday season lasts eight months. SOP orders the same amount each month, so SOP orders 12,240 packages during the holidays and 24,480 packages in the nonholiday season. Griswold only carries the organic cider during the holidays. Required: