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3 Lake Shore Ine. (LSI) manufactures several specialized high quality creams used by icecream and gelato manufacturers. Because of LSI special processes, high quality, precise
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Lake Shore Ine. (LSI) manufactures several specialized high quality "creams" used by icecream and gelato manufacturers. Because of LSI special processes, high quality, precise and consistent ingredients, LSI often receives special orders from gelato companies looking at introducing new products or when those companies also recelve higher than expected demand. For each type of specialized cream produced, LSI has formulated the precise mix to yield high quaity icecreams and gelato. LSi's operating is shown below. Gelato Supreme has asked LSI to deliver a special order with quantities and price as outined in the data below. LSi's production costs would not change, however, no variable selling costs will be incurted on the special order. There will alsobe a one-time special packaging charge also listed below. LSi can process the special order in two equal batches. And LSI does not anticpate any inctemental batch processing costs since most of these are foxed costs. The following information is provided about LSI's current operations: Lake Shore Ine. (LSI) manufactures several specialized high quality "creams" used by icecream and gelato manufacturers. Because of LSI special processes, high quality, precise and consistent ingredients, LSI often receives special orders from gelato companies looking at introducing new products or when those companies also recelve higher than expected demand. For each type of specialized cream produced, LSI has formulated the precise mix to yield high quaity icecreams and gelato. LSi's operating is shown below. Gelato Supreme has asked LSI to deliver a special order with quantities and price as outined in the data below. LSi's production costs would not change, however, no variable selling costs will be incurted on the special order. There will alsobe a one-time special packaging charge also listed below. LSi can process the special order in two equal batches. And LSI does not anticpate any inctemental batch processing costs since most of these are foxed costs. The following information is provided about LSI's current operations Step by Step Solution
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