The Fruit Co has a factory in a regional centre #4486

The Fruit Co has a factory in a regional centre with a full time administrator. During the fruit
season the assembly line is staffed with casual workers who are paid by the hour. Last year it
sold 30 000 cans of peaches with the following results: $Sales revenue
........................................ 900 000Variable costs ........................................ 630 000Contribution
margin ................................ 270 000Fixed costs ........................................... 190 000Operating
profit ..................................... 80 000The company expects variable costs to increase by $3 per
can for the current year.Required:A. Assuming the unit sale price remains constant, compute
the contribution margin for each can of peaches for the current year. B. How many cans of
peaches will have to be sold this year to earn the same operating profit as last year?C. Explain
why the wage of the factory administrator is treated as a fixed cost of producing cans of
peaches but the wages of the workers on the assembly line are treated as a variable cost.View
Solution:
The Fruit Co has a factory in a regional centre

ANSWER
http://paperinstant.com/downloads/the-fruit-co-has-a-factory-in-a-regional-centre/

1/1
Powered by TCPDF (www.tcpdf.org)