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Category > Management Posted 07 Oct 2017 My Price 5.00

Cramer Cookie company

If Cramer exports the batch to the United States, what is its estimated profit/loss in Danish kroner?

The Cramer Cookie company is a relatively new company and so far has sold its products only in its home country, Denmark. In December, Cramer determined that it had excess capacity to produce more of its special Christmas cookies. It is trying to decide whether to use that capacity to ship a batch of cookies overseas. The market department has determined that the United States and Great Britain are the two most valuable markets. Cramer has enough excess capacity to produce only one batch, which can be shipped to either country. The materials and labor cost to produce the batch amount to 8,500 kroner. The marketing department, which located a shipping company that could deliver to either location, also provided the following information:

United States

Shippping cost 3,000 us dollars, 400 us dollars duties/customs charges and misc selling expenses, total revenue 5200 us dollars, exchange rate data 1 krone=0.147 us dollars

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Maurice Tutor
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Status NEW Posted 07 Oct 2017 10:10 PM My Price 5.00

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