Coconut Juice Delights produces and sells 75,000 cases annually. The cost breakdown:COST ITEMCOSTS PER CASETOTAL COSTSVariable...
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Accounting
Coconut Juice Delights produces and sells 75,000 cases annually. The cost breakdown:
COST ITEM
COSTS PER CASE
TOTAL COSTS
Variable production costs
$22
$1,650,000
Fixed production costs
10
750,000
Variable selling costs
7
525,000
Fixed selling and admin costs
5
375,000
Total costs
$44
$3,300,000
Coconut Juice marks up prices 30% over full costs. It has the capacity to produce 20,000 more cases. A French distributor has offered to purchase 18,000 cases at $60 per case. Additional shipping and selling costs are $4 per case. Prepare the income statement showing the impact of accepting this order.
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