Papaya Juice Delights produces 90,000 cases annually. Each case costs:Variable production: $20Fixed production: $9Variable selling: $7Fixed...
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Accounting
Papaya Juice Delights produces 90,000 cases annually. Each case costs:
Variable production: $20
Fixed production: $9
Variable selling: $7
Fixed selling/admin: $5
Total cost: $41 per case
Papaya Juice marks up prices by 25% over full costs. The company can produce an additional 20,000 cases. A Japanese retailer has offered to buy 15,000 cases at $55 per case with additional shipping and selling costs of $4 per case. Calculate the effect on Papaya Juice's gross profit if it accepts this order.
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