Swiss Industries imports raw nuts from farmers at a cost of $8.40 per pound. Swiss can...
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Swiss Industries imports raw nuts from farmers at a cost of $8.40 per pound. Swiss can resell the nuts without any further processing for $9.00 a pound or it can use the nuts to make energy bars. Each box of energy bars contains eight-tenths (0.80) of a pound of nuts and can be sold for $13.20. Making and selling a box of energy bars requires additional variable costs of $3.30 per box. The traceable fixed costs associated with making energy bars includes the production line supervisor's salary of $5,805 per month, the product line sales manager's salary of $7,695 per month, and the depreciation expense on the specialized production equipment of $2,025 per month. The equipment has no resale value. Swiss is thinking about discontinuing production of energy bars. How many boxes of energy bars does Swiss need to sell each month to break-even on the production and sale of energy bars as opposed to merely reselling the raw nuts without any further processing? Round to the nearest whole number. 3,500 boxes O 4,250 boxes O 5,000 boxes O 5,750 boxes O None of the above Swiss Industries imports raw nuts from farmers at a cost of $8.40 per pound. Swiss can resell the nuts without any further processing for $9.00 a pound or it can use the nuts to make energy bars. Each box of energy bars contains eight-tenths (0.80) of a pound of nuts and can be sold for $13.20. Making and selling a box of energy bars requires additional variable costs of $3.30 per box. The traceable fixed costs associated with making energy bars includes the production line supervisor's salary of $5,805 per month, the product line sales manager's salary of $7,695 per month, and the depreciation expense on the specialized production equipment of $2,025 per month. The equipment has no resale value. Swiss is thinking about discontinuing production of energy bars. How many boxes of energy bars does Swiss need to sell each month to break-even on the production and sale of energy bars as opposed to merely reselling the raw nuts without any further processing? Round to the nearest whole number. 3,500 boxes O 4,250 boxes O 5,000 boxes O 5,750 boxes O None of the above
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Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
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