Double Olive Oil is planning to purchase its supply of raw Olives from three primary growers, Supplier A, Supplier B, and Supplier C. Purchase prices will not set until the orders are actually placed so Double Olive Oil will have to forecast purchase prices for the raw material and sales prices for the refined Olive oil. The contract is written such that Double Olive Oil is only required to commit to 75% of total capacity upfront. Any amounts over that can be purchased only as required for the same price. If the forecasted cost price is $450 and the forecasted selling price of oil is 1251.4. What will be an effective selling price per short ton from the expected percentage yields and the forecasted average price of Olive Oil? Make a detailed break-even chart that includes lines for the revenue and for the total cost, fixed cost, and variable cost (a total of four lines), and a calculation break-even point expressed in the number of short tons and percent of capacity.

Answer rating: 100% (QA)

1 The purpose of the report is to increase the profits of ABCD company by selecting a mix of basketb... View the full answer