Crane's sells two products, a pepper relish with a selling price of $6.26 and a variable cost per jar of $2.64 and a blackberry marmalade with a selling price of $6.26 and a variable cost per jar of $2.54. Crane's expected sales are 1,260 jars of pepper relish and 1,890 jars of blackberry marmalade. Fixed expenses are $10,726. How much revenue will Crane's need to generate from the sale of blackberry marmalade in order to break even?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 18E
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Crane's sells two products, a pepper relish with a
selling price of $6.26 and a variable cost per jar of
$2.64 and a blackberry marmalade with a selling price
of $6.26 and a variable cost per jar of $2.54. Crane's
expected sales are 1,260 jars of pepper relish and
1,890 jars of blackberry marmalade. Fixed expenses
are $10,726. How much revenue will Crane's need to
generate from the sale of blackberry marmalade in
order to break even?
Transcribed Image Text:Crane's sells two products, a pepper relish with a selling price of $6.26 and a variable cost per jar of $2.64 and a blackberry marmalade with a selling price of $6.26 and a variable cost per jar of $2.54. Crane's expected sales are 1,260 jars of pepper relish and 1,890 jars of blackberry marmalade. Fixed expenses are $10,726. How much revenue will Crane's need to generate from the sale of blackberry marmalade in order to break even?
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