Sell as is or Process Further Sweet cukes produces cucumbers which a variable manufacturing cost of .10 per cucumber. The selling price of a cucumber is .60 per unit. The fixed manufacturing overhead cost is $50,000. Sales volume is typically 1,000,000 cucumbers. Sweet cukes has developed an amazing recipe for pickles. Additional costs are estimated to be an additional $2.40 per jar of pickles in addition to the cucumber variable costs. Sweet cukes pickles can sell for $5.00 per jar. Additional fixed manufacturing overhead costs would be $100,000. The number of jars produced would be 100,000 jars. Make an analysis to determine whether sweet cukes should continue to sell cucumbers or process them further into pickles.

Sell as is or Process Further Sweet cukes produces cucumbers which a variable manufacturing cost of .10 per cucumber. The selling price of a cucumber is .60 per unit. The fixed manufacturing overhead cost is $50,000. Sales volume is typically 1,000,000 cucumbers. Sweet cukes has developed an amazing recipe for pickles. Additional costs are estimated to be an additional $2.40 per jar of pickles in addition to the cucumber variable costs. Sweet cukes pickles can sell for $5.00 per jar. Additional fixed manufacturing overhead costs would be $100,000. The number of jars produced would be 100,000 jars. Make an analysis to determine whether sweet cukes should continue to sell cucumbers or process them further into pickles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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