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Business, 17.09.2019 22:00, batmannn1516
La jolla beverage products is considering producing a wine cooler that would be a blend of a white wine, a rose wine, and fruit juice. to meet taste specifications, the wine cooler must consist of at least 50% white wine, at least 20% and no more than 30% rose, and exactly 20% fruit juice. la jolla purchases the wine from local wineries and the fruit juice from a processing plant in san francisco. for the current production period, 9000 gallons of white wine and 7500 gallons of rose wine can be purchased; an unlimited amount of fruit juice can be ordered. the costs for the wine are $1 per gallon for the white and $1.5 per gallon for the rose; the fruit juice can be purchased for $0.5 per gallon. la jolla beverage products can sell all of the wine cooler it can produce for $3 per gallon. is the cost of the wine and fruit juice a sunk cost or a relevant cost in this situation?
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