Question
Question 5 (1 point) Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
Question 5(1 point)
Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were:
Mama Italian Sauce | |
Production Cost Budget | |
April 2008 | |
Production - Jars of sauce | 20,000 |
Ingredient cost (variable) | $16,000 |
Labor cost (variable) | 9,000 |
Rent (fixed) | 4,000 |
Depreciation (fixed) | 6,000 |
Other (fixed) | 1,000 |
Total | $36,000 |
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 25,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign
Your Answer:Question 5 options:Answer |
Consider the production cost information for Mama Italiano Sauce given below:
Mama Italian Sauce | |
Production Cost Budget | |
April 2008 | |
Production - Jars of sauce | 20,000 |
Ingredient cost (variable) | $16,000 |
Labor cost (variable) | 9,000 |
Rent (fixed) | 4,000 |
Depreciation (fixed) | 6,000 |
Other (fixed) | 1,000 |
Total | $36,000 |
The company is currently producing and sellingjars of sauce The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.70 per jar. Suppose this action will increase sales. What is the incremental costs associated with producing an extra 66,500 jars of sauce?
Your Answer:Question 6 options:Answer |
Consider the production cost information for Mama Italiano Sauce given below:
Mama Italiano Sauce | |
Production Cost Budget | |
April 2008 | |
Production - Jars of sauce | 20,000 |
Ingredient cost (variable) | $16,000 |
Labor cost (variable) | 9,000 |
Rent (fixed) | 4,000 |
Depreciation (fixed) | 6,000 |
Other (fixed) | 1,000 |
Total | $36,000 |
The company is currently producing and selling 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.75 per jar. Suppose this action will increase sales to 319,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce?
Your Answer:Question 7 options:Answer |
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