Product Pricing Recommendation-The Acme Pickle Company analysis

The assignment focuses on Product Pricing Recommendation-The Acme Pickle Company analysis. You will required to analyze cost accounting practices to make a recommendation about it. This could be whether or not to accept a purchase offer at a lower price than normal.
 

Product Pricing Recommendation-The Acme Pickle Company analysis

 
Create a 9-slide presentation in which you analyze cost accounting practices. To make a recommendation about whether or not to accept a purchase offer at a lower price than normal. Also write a 2-3 page, single-spaced, supporting report. Acme Pickle Company has distributed pickles under the “Florida’s Best” brand production facility. It sells the pickles to stores in the southeastern United States.
 

Product Pricing Recommendation-The Acme Pickle Company analysis

 
Acme normally produces between 8,000 and 10,000 cases of pickles a month but has the capacity to produce 12,000 cases. Without adding equipment or personnel. The owner of a twenty-store supermarket chain. The chain called Super Deals, visits friends in Florida and impressed with the quality of “Florida’s Best” pickles. He approaches you, an Acme Pickle account manager, with an offer to buy 2,000 cases of pickles to use in a special promotion at his stores.
 

Product Pricing Recommendation-The Acme Pickle Company analysis

 
He is thinking of something such as: “Free jar of Florida’s Best pickles with every purchase of forty dollars or more—this month only!” He offers Acme a price of $9.50 per case, knowing that it is a very substantial discount from the normal selling price of $20 a case. Acme’s management inclined to turn the offer down, because their cost calculated at $10.00 a case. They believe they would lose money if they sold at $9.50 a case.
 

Product Pricing Recommendation-The Acme Pickle Company analysis

 
You, on the other hand, believe that some errors have made in the cost accounting. Your Role You are the account manager for Acme Pickles. Your analysis for the Controller and Sales Manager needed to suggest a different way of calculating the pricing of the pickles. Additionally, As part of your analysis, address the following items, Firstly, Explain why some production costs are variable and some fixed.

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