(Solved):Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce…

 

Question

Consider the production cost information for Mama Italiano Sauce given below:

Mama Italian Sauce

Production Cost Budget

April 2008

Production – Jars of sauce 20,000

Ingredient cost (variable) $16,000

Labor cost (variable) 9,000

Rent (fixed) 4,000

Depreciation (fixed) 6,000

Other (fixed) 1,000

Total $36,000

The company is currently producing and selling jars of sauce

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