Gold star delicacies makes small-batch jams and jellies


Gold Star Delicacies makes small-batch jams and jellies. Their workspace and equipment cost them $2600 per month in loans, and operating costs total an additional $700 per week. The variable cost per batch of jam in materials and labor is $350. Each batch can fill 200 bottles and each bottle can sell for $3.75. Find the break-even point for how many batches of jam they must sell in a month, assuming they sell all the bottles from each batch produced. What happens to the break-even point if 8% of the bottles from each batch are wasted and cannot be sold? What happens to the original break-even point if, instead, costs per batch go up by another $75

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Operation Management: Gold star delicacies makes small-batch jams and jellies
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