Question: I need scenario 2 and 3 please 1. Poland Spring reported the following information for their business for the month of October: Number of cases

I need scenario 2 and 3 please  I need scenario 2 and 3 please 1. Poland Spring reported
the following information for their business for the month of October: Number

1. Poland Spring reported the following information for their business for the month of October: Number of cases produced and sold 80,000 Selling Price $50 per case Packaging Department wages Water Salaries for factory management Plastic bottles Home office expenses Sales Commission 320,000 640,000 260,000 560,000 463,000 $4.00 per case Required: (30 points) You must show your calculations to receive credit. A. Prepare a Contribution Income Statement for October in good form. B. All scenarios are referenced to the above original data. Show calculations in a comparative contribution income statement. 1. A VP believes that by using higher quality plastic, which cost $3 per case more to make, the company could sell 30% more cases. Would this be a good decision? at References Mailings Review View Help ternet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing A. Prepare a Contribution Income Statement for October in good form. B. All scenarios are referenced to the above original data. Show calculations in a comparative contribution income statement. 1. A VP believes that by using higher quality plastic, which cost $3 per case more to make, the company could sell 30% more cases. Would this be a good decision? I 2. Another VP believes that if the commission to the sales force is increased by S1 per case, the selling price is lowered by S2, the company can increase its sales volume by 40% and make more profit. Is the VP correct? 3. Another VP believes that if the selling price is raised by $4, the company would make more profit even if they sell 20% less units. Is the VP correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!