Question
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
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?
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
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