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Estimate cost function? what is the breakeven point in cases for Oysters Away? The manager thinks that the copany will harvest and sell 3,000 cases of oysters next year. Estimate the after tax income in excel.
Revenue(based on sales of 2,000 cases of oysters) $200,000
Expense: Wages $100,000 Packing matierals 20,000 rent and insurance 25,000 adminstrative and selling 45,000 190,000 pre-tax (20%) 2000 After tax income $8000
There are several potential problems that can occur from the improper use of standard costs. Labor quantity standards and efficiency variances assume that production is labor-paced.
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