ARE $395--$ Problem Set $2$

$($Due Sept. $18)$

Using the below information,

solve for the breakeven price for Quinn's Quince Jelly,

solve for the target margin price if Quinn wants to earn a $30\%$ gross profit

margin.

The processing cost for the jelly is $$\frac{0\mathrm{.}25}{j}ar$ for labor and $$1,000hr$ for

utilities and overhead. The plant runs at minimum average cost at $1000$

cases per hour. There are $24$ jars of jelly per case. Jars cost $$0\mathrm{.}10$ each and

the box for a case costs $$0\mathrm{.}35.$