$10$ marks $4.$Meals@Home received a one$-$off special order from a corporate client to provide $3000$ of the sample large, $2$ meal$-$kit boxes as a special incentive for its employees. The client requested a special offer price of N$$20$ per box. However, some additional items will need to be added to each box that will increase ingredient cost by N$$2$ and variable overhead per box by N$$1.$ a$.$What are the incremental costs of accepting this offer? b$.$Should Meals@Home accept this offer? Show detailed calculations and explain your answer. c$.$What factors should the company consider in taking its decision? $3$:$05$ am Fri $15$Mar

Coursework$\_$BE$113\_$SP$2024$

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Example of standard cost card for a large meal kit box, serving a total of $8$ portions of two types of meals

$\backslash$table$[[$Meal$-$kits: $($A$)$ Vegetable and $($B$)$ Chicken$],[,\backslash$table$[[$Number of$],[$portions$]],\backslash$table$[[$Standard cost$/],[$Portion$],[$N$$]],\backslash$table$[[$Standard$],[$cost$/],[$Meal N$$]],\backslash$table$[[$Standard$],[$cost$/],[$Box N$$]]],[$Ingredients:$],[$Ingredients for meal$-$kit $($A$),4,1\mathrm{.}08,4\mathrm{.}32,],[$Ingredients for meal$-$kit $($B$),4,1\mathrm{.}20,4\mathrm{.}80,],[,,,9\mathrm{.}12],[\backslash$table$[[$Number of units$],[$of$],[$each input$]],\backslash$table$[[$Standard cost$/],[$unit of input$],[$N$$]],,],[$Packaging & other:$],[$Recipe cards,$2,0\mathrm{.}20,0\mathrm{.}40,],[$Outer box,$1,0\mathrm{.}30,0\mathrm{.}30,],[$Other packaging,$1,0\mathrm{.}70,0\mathrm{.}70,],[,,,1\mathrm{.}40],[$Direct labour:$],[$Herbs & spices,$0\mathrm{.}02$ labour hours,$15\mathrm{.}00,0\mathrm{.}30,],[$Meal$-$kit bags,$0\mathrm{.}04$ labour hours,$15\mathrm{.}00,0\mathrm{.}60,],[$Box packing,$0\mathrm{.}24$ labour hours,$15\mathrm{.}00,3\mathrm{.}60,],[,,,4\mathrm{.}50],[$Production overheads:$],[$Variable:$],[$Herbs & spices,$\backslash$table$[[0\mathrm{.}05$ machine$],[$hours$]],1\mathrm{.}62,0\mathrm{.}08,],[$Meal$-$kit bags,$\backslash$table$[[0\mathrm{.}10$ machine$],[$hours$]],1\mathrm{.}18,0\mathrm{.}12,],[$Box packing,$0\mathrm{.}24$ labour hours,$0\mathrm{.}86,0\mathrm{.}21,],[,,,0\mathrm{.}41],[$Fixed:$],[$Herbs & spices,$\backslash$table$[[0\mathrm{.}05$ machine$],[$hours$]],6\mathrm{.}49,0\mathrm{.}32,],[$Meal$-$kit bags,$\backslash$table$[[0\mathrm{.}10$ machine$],[$hours$]],4\mathrm{.}72,0\mathrm{.}47,],[$Box packing,$0\mathrm{.}24$ labour hours,$4\mathrm{.}85,1\mathrm{.}16,],[,,,1\mathrm{.}95],[$Total production cost,,,,$17\mathrm{.}38]]$

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