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Collectively, they offered Jane P1,500 for 40 baskets. Jane should have:

Collectively, they offered Jane P1,500 for 40 baskets. Jane should have:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aragon

Aragon, Inc. is along the highway leading to Chocolate Hills. Jane has a stall which specializes in hand-crafted fruit baskets that sell for P60 each. Daily fixed costs are P15,000 and variable costs are P30 per basket. An average of 750 baskets are sold each day. Jane has a capacity of 800 baskets per day. By closing time yesterday, a bus load of stopped by Jane's stall. Collectively, they offered Jane P1,500 for 40 baskets. Jane should have: rejected the offer since he could have lost P500 accepted the offer since he could have P700 contribution margin rejected the offer since he could have lost P900 accepted the offer since he could have P300 contribution margin
Transcribed Image Text:Aragon, Inc. is along the highway leading to Chocolate Hills. Jane has a stall which specializes in hand-crafted fruit baskets that sell for P60 each. Daily fixed costs are P15,000 and variable costs are P30 per basket. An average of 750 baskets are sold each day. Jane has a capacity of 800 baskets per day. By closing time yesterday, a bus load of stopped by Jane's stall. Collectively, they offered Jane P1,500 for 40 baskets. Jane should have: rejected the offer since he could have lost P500 accepted the offer since he could have P700 contribution margin rejected the offer since he could have lost P900 accepted the offer since he could have P300 contribution margin
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