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Whispering Moadows, a winery in Britsh Columbia, manufactures a premium white cabernet and sells primanily to distribusors. Wine is sold in cases of one dozen
Whispering Moadows, a winery in Britsh Columbia, manufactures a premium white cabernet and sells primanily to distribusors. Wine is sold in cases of one dozen bottles. In the yoar ended Decomber 31. Whispering Meadows sold 250,000 cases at an average selling price of $11080 per case. The following additional data are for Whispering Moadows for the year ended December 31 (assume constant unit cosis and no price, rate, or etticiency variances). Required 1. Calculate cases of production for Whispering Mescowb for the year. 2. Find the breakeven point inumber of cases) for the year. a. Under vanable costing b. Under absorption cosing 3. Grape prices are expected to increase-30\%, next year. Assuming all other data remain constant, what is the minimum number of cases Whispering Meadows must seli next year to break even? Calcilate the breakeven point a. Under variable costing b. Under absorption costing 4. Astume the owners of Whispering Meadows want to increase next year's operating income 10% over curront lovels. Using the same data as in requirement 3 , recalculate the target quantity of cases under variable and abtoeption costing. Use approximation method for absorplion costing
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