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All highlighted boxes need an answer A B D E G H K L 44 Special Order 45 Pete's Pizza makes the best pizzas in
All highlighted boxes need an answer
A B D E G H K L 44 Special Order 45 Pete's Pizza makes the best pizzas in town. Based on Pete's current volume, the price and cost breakdown is outlined below. The local high school has asked Pete to be their sole pizza provider for a 46 large event and has offered to order 400 pizzas at a special price. 47 ev $ 1,620 48 49 Per unit Relevant? 50 Normal sales price $ 12.00 51 Special price 9.40 52 Direct materials 3.00 53 Direct labor 2.00 54 Variable overhead 0.50 55 Fixed overhead 4.00 56 57 58 Should Pete accept the order in either of the following scenarios? 59 A. Pete has capacity to produce these pizzas with no additional investments. 60 B. Pete would need to rent a piece of equipment to accommodate the order. The rent would cost Pete: 61 Scenario 62 A 63 64 Enter "=0" in the cell for any cost not relevant to the decision. Number of pizzas ordered 66 Sales revenue 67 Variable costs 68 Direct materials 69 Direct labor 70 Variable overhead 71 Fixed overhead 72 Total costs Expected change in operating income 74 75 Should Pete accept the order? 76 56 8GB%n
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