Dennis Corp produces a dog food product called Special Export. It currently has 10,000 bags of Special Export on hand. The variable production costs per bag are P1.80 and total fixed costs are P10,000. The dog food can be sold as it is for 9.00 per bag or be processed further into Prime dog Food and Feline Surprise at an additional 2,000 cost. The additional processing will yield 10,000 bags of Prime dog Food and 3,000 bags of Feline Surprise, which can be sold for 8 and 6 per bag, respectively. Required: a. If Special Export is processed further into Prime dog Food and Feline Surprise, calculate the total gross profit. b. Should it sell Special Export or Process further?

Dennis Corp produces a dog food product called Special Export. It currently has 10,000 bags of Special Export on hand. The variable production costs per bag are P1.80 and total fixed costs are P10,000. The dog food can be sold as it is for 9.00 per bag or be processed further into Prime dog Food and Feline Surprise at an additional 2,000 cost. The additional processing will yield 10,000 bags of Prime dog Food and 3,000 bags of Feline Surprise, which can be sold for 8 and 6 per bag, respectively. Required: a. If Special Export is processed further into Prime dog Food and Feline Surprise, calculate the total gross profit. b. Should it sell Special Export or Process further?

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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