Papaya Juice Delights makes 70,000 cases yearly:Cost ItemCost per Case ($)Total Costs ($)Variable production costs211,470,000Fixed production...
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Accounting
Papaya Juice Delights makes 70,000 cases yearly:
Cost Item | Cost per Case ($) | Total Costs ($) |
Variable production costs | 21 | 1,470,000 |
Fixed production costs | 10 | 700,000 |
Variable selling costs | 7 | 490,000 |
Fixed selling/admin costs | 5 | 350,000 |
Total costs | 43 | 3,010,000 |
Papaya Juice marks up 30% over costs. With a capacity of 15,000 more cases, a Canadian retailer offers 12,000 cases at $55/case. Extra costs: $4/case. Prepare the cost of goods sold statement for this order.
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