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Strawberry Snacks produces 20,000 cases annually. Each case costs: Variable production: $15 Fixed production: $5 Variable selling: $4 Fixed selling and admin: $2 Total cost:
Strawberry Snacks produces 20,000 cases annually. Each case costs:
Variable production: $15
Fixed production: $5
Variable selling: $4
Fixed selling and admin: $2
Total cost: $26 per case
Strawberry Snacks marks up prices by 25% over full costs. The company has the capacity to produce 5,000 more cases. An Australian chain offers 4,000 cases at $40 per case with additional shipping and selling costs of $3 per case. Calculate the effect on Strawberry's gross profit if it accepts this order.
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