Remington Agricultural Products (RAP) produces organic cider with no preservatives. Any production must be sold...
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Remington Agricultural Products (RAP) produces organic cider with no preservatives. Any production must be sold within a few days, so producing for inventory is not an option. RAPs single plant has the capacity to make 72,500 cases of cider annually. Currently, RAP sells to only two customers: Savery's Organic Produce (SOP) and Griswold Food Stores (a chain of grocery stores). SOP orders 36,500 cases and Griswold orders 12,500 cases annually. Variable manufacturing costs are $16 per case, and annual fixed manufacturing costs are $866,000.
Required:
What cost per case should the cost system report?
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