Pear Juice Delights:Produces 85,000 cases annuallyVariable production costs: $21/caseFixed production costs: $9/caseVariable selling costs: $7/caseFixed...
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Accounting
Pear Juice Delights:
Produces 85,000 cases annually
Variable production costs: $21/case
Fixed production costs: $9/case
Variable selling costs: $7/case
Fixed selling/admin costs: $5/case
Total costs: $42/case
Marks up prices 30%. Capacity: 20,000 more cases. UK market offers 15,000 cases at $55/case. Extra costs: $4/case. Prepare the statement of cash flows reflecting this transaction.
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