Equifax
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Experian
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Gwinnett's profits for the year will decrease by $1,000
Explanation:
total costs for normal 14,000 cases:
Variable manufacturing cost $294,000 / 14,000 = $21 per caseFixed manufacturing cost $56,000 Variable selling and administrative cost $42,000 Fixed selling and administrative cost $38,000total = $430,000the incremental revenue of selling 1,000 cases to the school district = $23 x 1,000 = $23,000
the incremental costs for producing and selling 1,000 more cases:
variable manufacturing costs = $21 x 1,000 = $21,000variable S&A costs = $3 x 1,000 = $3,000total incremental costs = $24,000incremental revenue - total incremental costs = $23,000 - $24,000 = -$1,000