Stateline Berry Farm harvest early season blueberries forshipment throughout Michigan and Illnois in July. The blueberryfarm is maintained by a permanent staff of 10 employees andseasonal workers who pick and pack the blueberries. The blueberriesare sold in crates containing 100 individually pack aged one-quartcontainers. Affixed to each one-quart container is the distinctiveStateline Berry Farm logo inviting buyers to \"Enjoy the berry bestblueberries in the world!\" The selling price is $90 per crate,variable cost is $80 per crate, and fixed cost are $280,000 peryear. In the year 2017, Stateline Berry Farm sold 50,000crates.

Prepare a contribution income statement for the year endedDecember, 2017

Determine the company’s 2017 operating leverage

Calculate the percentage change in profit if sales decrease by10 percent.

Management is considering the purchase of several berry-pickingmachines. This will increase annual fixed cost of $375,000 andreduce variable costs to $77.50 per crate. Calculate the effect ofthis acquisition on operating leverage and explain any change.

Answer rating: 100% (QA)

Stateline Berry Farm Contribution Income Statement For the Year Ended December 31 2017 Sales Reven... View the full answer