Kiwi Juice Delights produces and sells 80,000 cases annually. Cost breakdown:Variable production costs: $22 per caseFixed...
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Accounting
Kiwi Juice Delights produces and sells 80,000 cases annually. Cost breakdown:
Variable production costs: $22 per case
Fixed production costs: $10 per case
Variable selling costs: $7 per case
Fixed selling and administrative costs: $4 per case
Total annual costs: $43 per case
Kiwi Juice marks up its prices 30% over full costs. With a surplus capacity of 20,000 cases, a Dutch retailer has offered to purchase 15,000 cases at $55 per case. Additional shipping and selling costs are $4 per case. Prepare the owner's equity statement reflecting the impact of this order.
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