Determine sweet cukes should continue to sell cucumbers

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Reference no: EM133901485

Problem

Sweet cukes produces cucumbers which a variable manufacturing cost of .10 per cucumber. The selling price of a cucumber is .60 per unit. The fixed manufacturing overhead cost is $50,000. Sales volume is typically 1,000,000 cucumbers. Sweet cukes has developed an amazing recipe for pickles. Additional costs are estimated to be an additional $2.40 per jar of pickles in addition to the cucumber variable costs. Sweet cukes pickles can sell for $5.00 per jar. Additional fixed manufacturing overhead costs would be $100,000. The number of jars produced would be 100,000 jars. Get the instant assignment help. Make an analysis to determine whether sweet cukes should continue to sell cucumbers or process them further into pickles.

Reference no: EM133901485

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