Reference no: EM13579788

Cost function, break even, quality of information, relevant range Oysters Away picks, shucks, and packs oysters and then sells them wholesale to fine restaurants across the state. The income statement for last year follows: Revenue (based on sales of 2,000 cases of oyster Expenses: Wages for pickers, shuckers and packers $100,000 Packing materials 20,000 Rend insurance 25,000 Administrative and selling 45,000 19,000 Pre- tax income 10,000 Taxes (20%) 2,000 After tax income 8000 Pickers, shuckers, and packer are employed on hourly bases and can be laid off whenever necessary. Sale people mostly deliver the product and are paid on a salaried basis. Estimate the cost function for oysters away What is the breakeven point in cases for oysters away? The manager thinks that the company will harvest and sell 3,000 cases of oysters next year. Estimate the aster tax income. Oyster away harvested and sold 2,000 cases in each of the last several years. What does this suggest about the quality of the income information you calculated in part C? Describe reasons why the cost function developed for the relevant range up to 2000 cases might no hold for 2001 to 3000.