Calculate the variable costs per thous and bottles for one-separation rounds, two-separation rounds, and two-separation ovals, assuming that all ovals are printed on the machine with the automatic feature for ovals.
Do one set of calculations for the Albany area (scrap included) and another for NewYork?NewJersey (freight included, but not scrap).
Only do one bottle size (the smallest) and assume the average order size is 10,000 bottles.
Prepare a suggested price list for the Albany area. Consider only one-separation rounds and two-separation rounds or ovals, for only the smallest size bottle
As a guide to completing this case you should consider the following questions:
How did Mr.Lipman'sgoal of a 30 percent margin (at capacity) affect your price recommendations?
Which products should the company attempt to sell in NewYork?NewJersey? Explain.
**Please view attachment***
Lipman Bottle Company is a bottle distributor located in Albany, New York. The firm is operating
in variable sizes of bottles and printing, but their profit is entirely from printing. The vice...
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