Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 10,000 cases of sauce each year but is currently only manufacturing and selling 9,000. The following costs relate to annual operations at 9,000 cases: Total Cost Variable manufacturing cost $126,000 Fixed manufacturing cost $45,000 Variable selling and administrative cost $18,000 Fixed selling and administrative cost $27,000 Gwinnett normally sells its sauce for $30 per case. A local school district is interested in purchasing Gwinnett's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 per case. This special order would not affect regular sales or total fixed costs or variable costs per unit. If this special order is accepted, Gwinnett's profits for the year will:
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 10,000 cases ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Universal Containers (UC) is both a Salesforce and Google Apps customer. The UC IT team would like to manage the users for both systems in a single place to reduce administrative burden.
Answers (1)
A company has an operating lease for its office space. The lease term is 120 months and requires monthly rent of $15,000. As an incentive for the company to enter into the lease, the lessor granted the first eight months' rent at no cost.
Answers (1)
Due to the complexity of the incident, the Incident Commander has expanded the Operations Section to include an Evacuation Group. What NIMS Management Characteristic is being demonstrated? Modular Organization
Answers (1)
A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country.
Answers (1)
On february 1, a corporation has 30 comma 00030,000 shares of $ 1$1 par value common stock issued and outstanding. the corporation also has additional paidminus-in capital of $ 100 comma 000$100,000 and retained earnings of $ 100 comma 000$100,000.
Answers (1)
New Questions in Business
George failed to pay $5,000 of income tax due with the filing of his return, which was timely filed on April 15th. He waits until June 10th after April 15th to pay the tax. How much will his penalties be?
Answers (1)
On November 1, 2019, Juno, Inc. declared a dividend of $3.00 per share on common stock. Juno, Inc. has 10,000 shares of common stock outstanding and 20,000 shares of preferred stock.
Answers (1)
Fallon Corporation reports net income of $370,000. Accounts Receivable balances at the beginning and end of the year were $40,000 and $48,000, respectively. Beginning and ending Inventory balances were $60,000 and $54,000, respectively.
Answers (1)
An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000.
Answers (2)
Which of the following is true? A. Both microeconomics and macroeconomics deal with same economic issues of inflation, unemployment and growth. B.
Answers (1)