. Incremental Sales. Clouse Dairy produces and sells 10,000 gallons per month of Joyce's Sweet Cream, a premium ice cream. Capacity is 12,000 gallons. A supermarket in another city has offered to buy 3,000 gallons of ice cream for \(\$ 1\) per gallon. Clouse would give up some regular sales to fill the new order. Costs and revenues per unit are:

\section*{Required:}
1. Using only quantitative facts, should Clouse sell to the supermarket? Explain your reasoning.
2. Comment on strategic and qualitative issues that might concern Clouse.

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Ingredients and labor. Variable overhead Fixed overhead... Cost per gallon Sales price $ .60 .20 .30 $1.10 $1.30