Acme Pie Company Ltd. is a new pie manufacturer who has an unbelievably awesome pie recipe. They have provided you with the following estimates for the month of March 2010. Direct labour $2.10/pie Direct materials $ 1.25/pie Total manufacturing overhead (based on 3,000 pies) $6,750/month Total manufacturing overhead (based on 4,500 pies) $7,725/month Packaging $0.25/pie Advertising $4,500/month Administration $ 1,600/month Acme has been approached by Calhoms, a new trendy coffee bar in town, to buy all of its pies. If the offer was accepted, Acme could eliminate its advertising costs and reduce its packaging costs by 60%. REQUIRED: If Acme does NOT accept Calhorns offer, it will sell its pies to the public at $7.95/pie. How many pies must Acme sell to the public to breakeven? Public Offer Assuming that Calhorns offers to pay $6.45/pie, how many pies must Acme sell to Calhorns in order to break - even for the month? Calhorns: Assuming that Calhorns offers to buy 3,500 pies, What is the lowest price per pie that Acme may accept in order to at least break - even? What price must be charged to make a $2,500 profit if Calhorns buys 3,500 pies? At what volume of pies would Acme be indifferent between selling to the public at $7.95/pie and selling to Calhorns at $6.45/pie? Acme Pie Company Ltd. is a new pie manufacturer who has an unbelievably awesome pie recipe. They have provided you with the following estimates for the month of March 2010. Direct labour $2.10/pie Direct materials $ 1.25/pie Total manufacturing overhead (based on 3,000 pies) $6,750/month Total manufacturing overhead (based on 4,500 pies) $7,725/month Packaging $0.25/pie Advertising $4,500/month Administration $ 1,600/month Acme has been approached by Calhoms, a new trendy coffee bar in town, to buy all of its pies. If the offer was accepted, Acme could eliminate its advertising costs and reduce its packaging costs by 60%. REQUIRED: If Acme does NOT accept Calhorns offer, it will sell its pies to the public at $7.95/pie. How many pies must Acme sell to the public to breakeven? Public Offer Assuming that Calhorns offers to pay $6.45/pie, how many pies must Acme sell to Calhorns in order to break - even for the month? Calhorns: Assuming that Calhorns offers to buy 3,500 pies, What is the lowest price per pie that Acme may accept in order to at least break - even? What price must be charged to make a $2,500 profit if Calhorns buys 3,500 pies? At what volume of pies would Acme be indifferent between selling to the public at $7.95/pie and selling to Calhorns at $6.45/pie