Smuckers manufactures a variety of high-quality jams and jellies. They have found their blueberry jam is currently in high demand. Last year strawberry jam was their biggest selling jam and the year before was orange marmalade. The production plan and costs for blueberry jam production for the current year is show below. Sales price per case (12 jars per case) $32.00 Direct Material cost per case $15.00 Direct Labor cost per case $ 6.00 Variable Manufacturing Overhead per case $ 3.00 Total Fixed Manufacturing Overhead costs for the year $90,000 Total Fixed selling and administrative costs for the year $20,000

A) Forecasted sales and production for the year are 30,000 cases. Prepare a traditional absorption income statement for the year using the data provided. Ignore income taxes.

B) The production manager for blueberry jam is measured on the profit performance of blueberry jam and is concerned that 30,000 cases of production in not enough for the blueberry production employees to earn bonuses for the year because the production capacity for the blueberry jam is 50,000 cases per year. She believes that producing 40,000 cases would earn the bonuses. Explain why producing more (but not selling more) could improve profits.

C) Should the manager produce 30,000 or 40,000 cases this year? Explain your answer in terms of the related risks and/or benefits.

D) If Smuckers wanted to have this years profits on blueberry jam to equal $180,000. a. What would the markup variable manufacturing costs have to be? b. What would the price per case need to be?

Please help answer all. Thanks.