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Business, 18.12.2019 02:31 mgillis8816

Gwinnett barbecue sauce corporation manufactures a specialty barbecue sauce. gwinnett has the capacity to manufacture and sell 10,000 cases of sauce each year but is currently only manufacturing and selling 9,000. the following costs relate to annual operations at 9,000 cases: total cost variable manufacturing cost $126,000 fixed manufacturing cost $45,000 variable selling and administrative cost $18,000 fixed selling and administrative cost $27,000 gwinnett normally sells its sauce for $30 per case. a local school district is interested in purchasing gwinnett's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 per case. this special order would not affect regular sales or total fixed costs or variable costs per unit. if this special order is accepted, gwinnett's profits for the year will:

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