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Annie's Homemade s regular selling price is $ 5 . 0 0 per serving of ice cream. It has been approached by a wedding party
Annie's Homemades regular selling price is $ per serving of ice cream. It has been approached by a wedding party who has offered to pay $via credit card for prepackaged servings of ice cream. The party would expect Annie's employees to remain at the wedding venue for two hours to serve the ice cream. From Annie's perspective, the total proceeds of $ would be subdivided as follows: Sales revenue $ Sales tax of gross sales $ Annie's would cater the event with one manager, who is paid $ per hour, and two additional employees who are each paid $ per hour. The distance to the event is miles each direction and the drive time is minutes roundtrip. The company can fulfill the special order with its existing production capacity and would not have to sacrifice any other sales opportunities. It has gathered the following additional information to assist in making the decision: Ingredient and packaging cost per serving $ Franchise fee of sales revenue Credit card processing fee of total proceeds Average time for manager to make one batch of servings of ice cream hours Average time for hourly employee to prepackage one serving of ice cream minute Pickup truck diesel fuel, oil, and diesel exhaust fluid expenses $ per mile Annual expenses: Pickup truck depreciation, insurance, registration, and vehicle tax $ Manufacturing overhead eg equipment depreciation, rent, utilities, insurance, etc. $ Offsite sales equipment depreciation eg trailer, mobile freezer and sales booth $ Required: For each item shown below, use the dropdown menu to categorize it as relevant or irrelevant in the decision to the accept or reject the specialorder opportunity. For each item you categorize as relevant, insert the corresponding amount of the total incremental revenue or total incremental cost use parentheses for all incremental costs For each item you categorize as irrelevant, insert a zero in the Amount column.
Annie's Homemades regular selling price is $ per serving of ice cream. It has been approached by a wedding party who has offered to pay $via credit card for prepackaged servings of ice cream. The party would expect Annie's employees to remain at the wedding venue for two hours to serve the ice cream. From Annie's perspective, the total proceeds of $ would be subdivided as follows:
Sales revenue $
Sales tax of gross sales $
Annie's would cater the event with one manager, who is paid $ per hour, and two additional employees who are each paid $ per hour. The distance to the event is miles each direction and the drive time is minutes roundtrip.
The company can fulfill the special order with its existing production capacity and would not have to sacrifice any other sales opportunities. It has gathered the following additional information to assist in making the decision:
Ingredient and packaging cost per serving $
Franchise fee of sales revenue
Credit card processing fee of total proceeds
Average time for manager to make one batch of servings of ice cream hours
Average time for hourly employee to prepackage one serving of ice cream minute
Pickup truck diesel fuel, oil, and diesel exhaust fluid expenses $ per mile
Annual expenses:
Pickup truck depreciation, insurance, registration, and vehicle tax $
Manufacturing overhead eg equipment depreciation, rent, utilities, insurance, etc. $
Offsite sales equipment depreciation eg trailer, mobile freezer and sales booth $
Required:
For each item shown below, use the dropdown menu to categorize it as relevant or irrelevant in the decision to the accept or reject the specialorder opportunity. For each item you categorize as relevant, insert the corresponding amount of the total incremental revenue or total incremental cost use parentheses for all incremental costs For each item you categorize as irrelevant, insert a zero in the Amount column.
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