Does generate include fruit if a manufacturer spends $2,300,000 on upfront (fixed) production costs for one of their products and $14,
Produce is any fruit or vegetable, including combinations of undamaged fruits and vegetables, and includes herbs, sprouts (regardless of the source of the seed), peanuts, tree nuts, and herbs.
Briefing
Sales 3,850,000.00
Variable 3,325,000.00 (175,000 x 19)
Gross Profit 525,000.00
S&A 525,000.00
Net Income -
Under aborption cost, the company will include the fixed cost as part of the unit cost.
3850000 / 22 = 175,000 sold units
Variable cost 2,450,000 / 175,000 = 14
650,000 fixed will be distribute among the 130,000 units produced
650,000/130,000 = 5
Absorption cost
14 + 5 = 19
Selling and administrative will be placed as expenses.
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