Question
In: Accounting
Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farm’s...
Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farm’s leading product is Salad-in-a-Bag, which is a mixture of organic green salad ingredients prepared and ready to serve. The company sells a large bag to restaurants for $25. It calculates the variable cost per bag at $19 (including $1 for local delivery), and the average total cost per bag is $22. Because the vegetables are perishable and Great Oaks Farm is experiencing a large crop, the farm has extra capac- ity. A representative of a restaurant association in another city has offered to buy fresh salad stock from the company to augment its regular supply during an upcoming international festival. The restaurant association wants to buy 2,500 bags during the next month for $21 per bag. Delivery to restaurants in the other city will cost the company $0.75 per bag. It can meet most of the order with excess capacity but would sacrifice 400 bags of regular sales to fill this special order. Please assist Great Oaks Farm’s management by answering the following questions.
Required
a. Using differential analysis, what is the impact on profits of accepting this special order?
b. What nonquantitative issues should management consider before making a final decision?
c. How would the analysis change if the special order were for 2,500 bags per month for the next five years?
Try and use excel, thanks!
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Special Order Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing....
Special Order
Great Oaks Farm grows organic vegetables and sells them to local
restaurants after processing. The farm’s leading product is
Salad-in-a-Bag, which is a mixture of organic green salad
ingredients prepared and ready to serve. The company sells a large
bag to restaurants for $25. It calculates the variable cost per bag
at $19 (including $1 for local delivery), and the average total
cost per bag is $22. Because the vegetables are perishable and
Great Oaks Farm is experiencing...
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
Sunburst Veggies is a vertically-integrated company which both grows[1] and processes organic vegetables. Their company-grown vegetables...
Sunburst Veggies is a vertically-integrated company which both
grows[1] and processes organic vegetables. Their company-grown
vegetables are canned and then sold wholesale to grocery stores.
The company began their operations in San Marcos, Texas in the
mid-1990s and the corporate headquarters remain there. Sunburst
grows a wide variety of organic (non-GMO) vegetables in
greenhouses, some of which cover more than 200 acres. The
vegetables are shipped from manufacturing facilities near the
greenhouses. This assures the vegetables are processed as quickly...
Julio Fernandez runs a small business specializing in delivering organic fruit and vegetables to the local...
Julio Fernandez runs a small business specializing in delivering
organic fruit and vegetables to the local area. He buys from local
farms and packages these together in boxes and delivers them
locally. Each box is sold for $12. He has the following costs:
Direct wages are $9 per hour (30 minutes per box on average) Fruit
and vegetables are $4 per box Other fixed costs incurred each
year for this business are as follows: o Rent of Delivery...
PHP A local client needs to take his static web page for ordering organic vegetables and...
PHP
A local client needs to take his static web page for ordering
organic vegetables and build a dynamic page. He doesn't have much
money to spend, so we are going to write orders to a flat file. He
is also going to need a page that he can go to that will display
his orders.
He has already met with Sharron, so we've got a specification
already assembled. Here are the details:
The customer will go to a form...
Suppose John grows $1 million in peanuts and sells them to Snappy's which uses them to...
Suppose John grows $1 million in peanuts and sells them to
Snappy's which uses them to make $5 million in peanut butter. These
two actions contribute _____ to GDP.
Group of answer choices
$5 million
$1 million
$4 million
$6 million
Question 1 Delicious Catering Supply sells various equipment and supplies to restaurants in the local and...
Question 1
Delicious Catering Supply sells various equipment and supplies
to restaurants in the local and surrounding communities. The
company’s executive, Encik Haziq Azim, has requested your help in
preparing a cash budget for the month of May & June. Encik
Haziq Azim accumulated the following information for you:
(i) The cash balance at May 1 was estimated to be RM80,000.
(ii) Actual sales of April and May and budgeted sales for June
are as follows:
April
RM
May
RM...
Question 1 Steel Restaurant Supply sells various equipment and supplies to restaurants in the local and...
Question 1
Steel Restaurant Supply sells various equipment and supplies to
restaurants in the local and surrounding communities. The company’s
executive, Mr. Daniel, has requested your help in preparing a cash
budget for the month of May and June. Mr. Daniel accumulated the
following information for you.
1. The cash balance at May 1 was estimated to be RM120,000.
2. Actual sales of April and budgeted sales for May and June are
as follows:
April
May
June
Actual
Budgeted
RM...
Question 1 Delicious Catering Supply sells various equipment and supplies to restaurants in the local and...
Question 1
Delicious Catering Supply sells various equipment and supplies to
restaurants in the local and surrounding communities. The company’s
executive, Encik Haziq Azim, has requested your help in preparing a
cash budget for the month of May & June. Encik Haziq Azim
accumulated the following information for you:
i. The cash balance at May 1 was estimated to be RM80,000.
ii. Actual sales of April and May and budgeted sales for June are
as follows:
April
RM May
RM...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Define a char variable. Read a char value from the keyboard into the variable. Print the...
- If you wanted to store a birthday within code, what class would you use in Java?...
- Explain what is meant by the Theme Park internal and external business environment and use the...
- Description Write a program that prints out your name, the course ID of this class, what...
- A project has an initial cost of $65,475, expected net cash inflows of $12,000 per year...
- Make a program that lets the user enter a positive or negative integer as many times...
- using java, parse a text file to be able to list the word(s) with the highest...
ADVERTISEMENT