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5. CVP AND INCREMENTAL ANALYSIS. TAKE A SPECIAL ORDER. BlueJav makes Ever Blue, which is used to fertilize hydrangeas and keep their blossoms bl company
5. CVP AND INCREMENTAL ANALYSIS. TAKE A SPECIAL ORDER. BlueJav makes Ever Blue, which is used to fertilize hydrangeas and keep their blossoms bl company usually sells through a distribution network for $15 per five-pound bag. Norma umes are 5,000 bags per year.The costs for normal blue. The production are in the table below BlueJay Products Variable Cost $8.50 Fixed Costs Ever Blue $15.00 $25,000.00 REQUIRED a. Calculate the current breakeven volume in bags. b. Calculate the margin of safety c. QRC Productions approaches BlueJay with an offer to buy 2,500 bags at a reduced price of $10.50. QRC would be selling to many of the same markets BlueJay now serves. Using incremental analysis, does it make sense for BlueJay to take this special order? Why or why not
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