The Dairy Division of Waterway Industries produces and sells milk to outside customers. The operation has the
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The Dairy Division of Waterway Industries produces and sells milk to outside customers. The operation has the capacity to produce 200000 gallons of milk a year. Last year’s operating results were as follows:
Sales (170000)
gallons $986000
Variable costs 289000
Contribution margin 697000
Fixed costs 187000
Net Income $ 510000
Assume the Yogurt Division wants to purchase 20000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division’s profit is?
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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