Question
Production of jars 20,000 Ingredient (variable cost)$16,000 Labor (variable)9,000 Rent (fixed)4,000 Depreciation (fixed)6,000 Other (fixed)1,000 Total$36,000 1.The jars sell for $4.00 each. If the price
Production of jars 20,000
Ingredient (variable cost)$16,000
Labor (variable)9,000
Rent (fixed)4,000
Depreciation (fixed)6,000
Other (fixed)1,000
Total$36,000
1.The jars sell for $4.00 each. If the price is lowered to $3.70 each. What is the incremental costs producing an extra $62,750 jars?
2.If the company is selling 250,000 jars a year and the jars sell for $4.00 each.The company wants to lower the price to $3.65 each and sales increase to 312,000 per jar.What is the incremental revenue relating to the reduction?
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
9780132997621, 132149117, 132997622, 978-0132149112
