Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
StormLrd StormLrd
wrote...
Go to Answer
Posts: 1017
Rep: 0 0
6 years ago
Clearwater Company operates a wine outlet in a tourist area. One litre bottles sell for $12. Daily fixed costs are $3,000, and variable costs are $6 per litre. An average of 750 litres are sold each day. Clearwater has a capacity of 800 litres per day.

Required:
a.   Determine the average cost per bottle.
b.   A bus loaded with 40 senior citizens stops by at closing time and the tour director offers Clearwater $300 for 40 litres. Clearwater refuses, saying they would lose $2.50 on each litre. Is Clearwater correct about the $2.50? Why or why not?
c.   A fund-raising organization has offered Clearwater a one-year contract to buy 300 litres a day for $7.50 each. Should they accept the offer? Why or why not?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 498 times
4 Replies
Replies
Answer verified by a subject expert
AllopaAllopa
wrote...
#1
Top Poster
Posts: 683
Rep: 7 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 180 words.
1

Related Topics

goj
wrote...
#2
4 years ago
ty
wrote...
#3
4 years ago
Hi.
wrote...
#4
3 years ago
Thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  2038 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 430
  
 267
  
 270
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 484
Previous poll results: Do you trust social media networks with protecting your privacy?