Cocoa price per tonne (Variable Costs): find today's spot price of cocoa per tonne. Use the following
Question:
Cocoa price per tonne (Variable Costs): find today's spot price of cocoa per tonne. Use the following website to determine the US$/tonne of cocoa: https://www.nasdaq.com/market-activity/commodities/cj:nmx. The price quoted on this website will be the US dollar price per tonne.
This price is the variable price per tonne of cocoa without any price premium. The new cartel price will be $400 + the current price.
Fixed Costs: The fixed costs specifically allocated to cocoa production from Cocoa Cartel countries are currently $15,000,000 ($15 million) annually. Suppose Mars changes their production processes to use cocoa from different countries outside the cartel. In that case, there will be a one-time cocoa production cost of $351,000,000 ($351 million) in 2021 (in addition to the original $15 million) due to a one-time investment in new processes and equipment required to accommodate the different cocoa sources and retain the same quality chocolate. The $351 million expense will be fully incurred in the first year.
How I get fixed cost in non-cartel countries.
This is what i get can you check and let me know is that right or not please?
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan