Marigold Corp.wants to produce and sell a new flavored water. In order to penetrate the market, the product will have tosell at $2 per 12 oz. bottle. The following data has been collected:Annual salesProjected selling and administrative costsDesired profitThe target cost per bottle isO $0.16.O $0.20.$0.80.O $0.64.55000 bottles$8900$66000

Target Cost per Bottle = Total Costs−Desired Profit / Number of bottles sold

Answered: Marigold Corp.wants to produce and sell…

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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1. Complete the following comparison alternatives. Per 600 pounds Process Further Sell Difference Revenues Bags Shipping Grinding Bottles Totals 2. Should Zanda sell depryl at split-off, or should depryl be processed and sold as tablets and why. 3. If Zanda normally sells 265,000 pounds of depryl per year, what will be the difference in profits, in dollars, if depryl is processed further?
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