Cathy and Tom's Specialty Ice Cream Company operates a small production facility for...
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Accounting
Cathy and Tom's Specialty Ice Cream Company operates a small production facility for the local community. The facility has the capacity to make 17,400 gallons of the single flavor, GUI Chewy, annuallyThe plant has only two customers, Chuck's Gas & Go and Marcee's Drive & Chew DriveThru. Annual orders for Chuck's total 8,700 gallons and annual orders for Maroee's total 4,400 gallons. Variable manufacturing costs are $0.80 per gallon, and annual fixed manufacturing costs are $29,800. Required: What cost per gallon should the cost system report? (Round your intermediate calculations and final answers to 2 decimal places.) Cast pergallon at apacily Cost per gallon at demand
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