What is the incremental revenue associated

Assignment Help Accounting Basics
Reference no: EM133030416

Question - Consider the production cost information for Mama Italiano Sauce given below: Mama Italiano Sauce

Production Cost Budget April 2008

Production - Jars of sauce 20,000

Ingredient cost (variable) $16,000

Labor cost (variable) 9,000

Rent (fixed) 4,000

Depreciation (fixed) 6,000

Other (fixed) 1,000

Total $36,000

The company is currently producing and selling 250,000 jars of sauce annually. The jars of sauce sell for $4 per jar. The company is considering lowering the price to $3.75 per jar. Suppose this action will increase sales to 313,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce?

Reference no: EM133030416

Questions Cloud

How does the marketing of cardiology services : How does the marketing of cardiology services by a hospital differ from the marketing of cosmetic surgery? Provide specific examples to support your response.
What is Crane Creations direct materials price variance : The standard price of the copper tubing was $2.60 per foot. What is Crane Creations' direct materials price variance for the period
List several organizational behavior issues : List several organizational behavior issues that impact retention for Amazon
Briefly discuss adjustment disorder : Briefly discuss Adjustment Disorder (be sure to include the DSM-5 diagnostic criteria).
What is the incremental revenue associated : Suppose this action will increase sales to 313,500 jars of sauce. What is the incremental revenue associated with the price reduction of sauce
Improve safety in an organizational environment : Explain effective practices that the human resources department could implement to improve safety in an organizational environment
What is identified role : What is your identified role and how do you fulfill that while allowing clients/patients to have their own personal beliefs?
Identify different methods used in needs assessment : Identify different methods used in needs assessment and identify the advantages and disadvantages of each method.
Calculate the amount of contract revenue : Calculate the amount of contract revenue, costs, profit or loss for each contract that should be recognised in the statement of profit and loss

Reviews

Write a Review

Accounting Basics Questions & Answers

  Materials used by the industrial division of crow

materials used by the industrial division of crow manufacturing are currently purchased from outside suppliers at a

  Prepare an argument that use of present value free cash-flow

Acc 573- Create an argument that use of the present value free cash-flow method has a more beneficial economic meaning than earnings-based methods. Provide support for your argument.

  Prepare the intangibles section of sandhill balance sheet

Sandhill estimates that these costs will be recouped by December 31, 2020. Prepare the intangibles section of Sandhill's balance sheet at December 31, 2017

  What is the amount of the unamortized bond discount

On July 2, 2020, Martineau Ltd. issued $6,000,000 (par value), What is the amount of the unamortized bond discount on April 1, 2021

  Make an income statement and a retained earnings statement

Make an income statement and a retained earnings statement for the year ending December 31, 2019, and classified statement of financial position as of December

  What amount BSA Malakas report as accumulated depreciation

In its December 31, 2013 balance sheet, what amount should BSA Malakas Co. report as accumulated depreciation for equipment

  Compute the next tax benefit from each alternative

Should Dean sell the stock and then donate the cash, or should he donate the stock directly? Compute the next tax benefit from each alternative

  Find the type of audit report the auditor would issue is

Find the type of audit report the auditor would issue in this circumstance is? In an audit of internal control, the auditor discovered one control deficiency

  M and mrs v are self-employed professional musicians

mr. and mrs. v are self-employed professional musicians. their average annual income from performance fees and

  How much is the presumptive input tax

Coco Nat is engage in purchasing from copra producers and process them into canned cooking oil. How much is the presumptive input tax

  If the notes provides for interest compounded semiannually

on june 30 2008 raminc. borrowed 25000 from good bank. in connection with the transaction ram executed an 8 two-year

  From the e-activity identify the job aspects educational

research the internet and identify at least three 3 websites that provide specific information useful to accountants or

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd