Question: Could you explain how to do this problems? Thank you so much. Starlight Inc. cans peaches for sale to food distributors. All costs are classified

Could you explain how to do this problems? Thank you so much.

Could you explain how to do this problems? Thank you so much.Starlight Inc. cans peaches for sale to food distributors. All costs are

Starlight Inc. cans peaches for sale to food distributors. All costs are classified as either manufacturing or marketing. Starlight prepares monthly budgets. The March 2018 budgeted absorption-costing statement of comprehensive income is as follows: (Click the icon to view the budgeted statement of comprehensive income.) Monthly costs are classified as fixed or variable (with respect to the number of crates produced for manufacturing costs and with respect to the number of crates sold for marketing costs) - X Budgeted statement of comprehensive income Revenue (1,000 crates x $120 a crate) $ 120,000 Cost of goods sold 57,000 Gross margin 63,000 Marketing costs 27,000 $ 36,000 Operating income Normal markup percentage $63,000 / $57,000 = 110.5% of absorption cost Cost information E.. Print Done Fixed Variable Manufacturing $ 22,000 $ 35,000 Marketing 10,000 Marketing 10,000 17,000 Total fixed costs 32,000 Starlight has the capacity to can 1,800 crates per month. The relevant $ 36,000 Operating income range in which monthly fixed manufacturing costs will be "fixed" is from 500 to 1,800 crates per month. Now using the statement of comprehensive income you completed selecting the formula you will use. Then enter the amounts and cal places.) ( Contribution margin / Total variable costs )X 100 Print Done $ 68,000 $ 52,000 ) x 100Requirement 2. Assume that a new customer approaches Starlight to buy 250 crates at $55 per crate for cash. The customer does not require any marketing effort. Additional manufacturing costs of $1,250 (for special packaging) will be required. Starlight believes that this is a one-time-only special order because the customer is discontinuing business in six weeks' time. Starlight is reluctant to accept this 250-crate special order because the $55-per-crate price is below the $57-percrate absorption cost. Do you agree with this reasoning? Explain. Begin by determining the relevant costs needed to make this decision. Total relevant costs l;l

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