Home Insert Page Layout Formulas Data View Review в Harvesting Division 2 Variable cost per pound of cranberries 3 Fixed cost per pound of cranberries 4 Selling price per pound of cranberries in outside market Processing Division |Variable processing cost per gallon of juice produced Fixed cost per gallon of juice produced Selling price per gallon of juice $0.10 $0.18 $0.30 $0.68 $2.45
Home Insert Page Layout Formulas Data View Review в Harvesting Division 2 Variable cost per pound of cranberries 3 Fixed cost per pound of cranberries 4 Selling price per pound of cranberries in outside market Processing Division |Variable processing cost per gallon of juice produced Fixed cost per gallon of juice produced Selling price per gallon of juice $0.10 $0.18 $0.30 $0.68 $2.45
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cran Health Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting’s output is converted into cranberry juice by the processing division, and the juice is sold to large beverage companies that produce cranberry juice blends. The processing division has a yield of 500 gallons of juice per 1,000 pounds of cranberries. Cost and market price data for the two divisions are as follows:
Q.Compute Cran Health’s operating income from harvesting 480,000 pounds of cranberries during June 2017 and processing them into juice.
Transcribed Image Text:Home
Insert
Page Layout
Formulas
Data
View
Review
в
Harvesting Division
2 Variable cost per pound of cranberries
3 Fixed cost per pound of cranberries
4 Selling price per pound of cranberries in outside market
Processing Division
|Variable processing cost per gallon of juice produced
Fixed cost per gallon of juice produced
Selling price per gallon of juice
$0.10
$0.18
$0.30
$0.68
$2.45
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