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2 Problem II. (20 points). Recommended Time: 50 minutes. Score: Todt Hill Bakery, a full service bakery, specializing in cakes, cupcakes, donuts, and other pastries,
2 Problem II. (20 points). Recommended Time: 50 minutes. Score: Todt Hill Bakery, a full service bakery, specializing in cakes, cupcakes, donuts, and other pastries, requires at least a one-month notice for weddings, bar mitzvahs, anniversaries, and other large cake at $3,000, including delivery, if the event is on Staten Island. Marly Fitzsimons calls and tells Joanne Baker, the chief baker, that her daughter's husband was called for military service and is being deployed on Sunday. It is Thursday and the planned wedding is on Saturday. They need a cake to serve 200 guests, the same exact size as a standard cake, but has a limited budget and can only pay $1,600. Joanne has the available capacity, as other orders in process will not be impacted, but she will have to pay overtime to get this special order completed. The customer says she can pick up the cake, saving the bakery on the delivery fee. She needs to do some research and tells the customer she will call back in 20 minutes to let her know if she will accept or reject the order. Joanne Baker looks at a variety of cost data, per cake, including: Variable materials, per cake $420 Variable labor, per cake *Variable overhead, per cake Fixed overhead, per cake 500 60 300 *The variable overhead is delivery costs. Other facts: The labor costs above do not reflect approximately $ 450 in overtime that would result in employees working into the night for this special order. Joanne bought a new mixer costing $950 months ago; the depreciation is included in fixed overhead. Instructions: Show your calculations labeled and in good form to receive credit. 1. Prepare an incremental analysis to present to Joanne so she can decide whether to accept or reject the special, one-time only order. Only use relevant data to support your analysis. 2. Should Todt Hill Bakery, under Joanne Baker's supervision, accept or reject the cake order? Explain. 3. What qualitative considerations might Joanne consider? 4. What is the cost of the new mixer called in this analysis? 1.554,000, calculate the
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