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3. OhMyGoodness, Inc. has been approached by a new customer with an offer to purchase 3,500 organic cake mixes at a price of $3.99. OhMyGoodness
3. OhMyGoodness, Inc. has been approached by a new customer with an offer to purchase 3,500 organic cake mixes at a price of $3.99. OhMyGoodness normally produces 12,000 units each year al The company will have to hire 20% more direct labor at the same cost per hour to make the products and deliver them on time. The normal sales commission of 3% will be paid to the salesman who got the order for the Company. Products will be shipped to the customer stores at a cost of $900. The relevant range for OhMyGoodness, Inc. is from 10,000 to 18,000 units each year. The normal sales price is $5.49 each. A. Determine the change to operating income if the company accepts the order. B. Determine the change to operating income if th company's relevant range is 10,000 to 12,000 and fixed MOH will increase by 30% if the order is accepted
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