Question

Multiple Choice Question 134 Sheridan's sells two products, a pepper relish with a selling price of $4.50 and a variable cost per jar of $2.05 and a blackberry marmalade with a selling price of $4.50 and a variable cost per jar of $1.95, Sheridan's expected sales are 920 jars of pepper relish and 1380 jars of blackberry marmalade. Fixed expenses are $7836. At the expected sales level, Sheridan's net income will be $10350 $(3213) $0 $4623 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Please find below the working, answer is not part of options given, we can choose Net income as 0 because Sheridan is having loss.

	Pepper Relish	Blackbery Marmalade
Expected Sales (Jars) (A)	920	1380
SP/ jar ($)(B)	4.5	4.5
Variable Cost / Jar ($) ©	2.05	1.95
Gross Profit/ Jar ($) (B-C) = D	2.45	2.55
Total Gross Profit ($) D*A	2254	3519
		Amount ($)
Total Gross Profit from Pepper Relish		2254
Total Gross Profit from Blackberry Marmalade		3519
Total Gross Profit		5773
Less: Fixed Expenses		7836
Net Loss		-2063