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Ariel Cupcakes make cupcakes for special occasions. They charge $5 per cupcake. They've received a request for a special order for 174 cupcakes at a
Ariel Cupcakes make cupcakes for special occasions. They charge $5 per cupcake. They've received a request for a special order for 174 cupcakes at a price of $6 each. The costs to produce a single cupcake are:
Direct materials of $2.11 Direct labour of $0.61 Packaging of $1 Fixed costs of $2,713 for factory rent and equipment
What is the impact on Ariel Cupcakes' profit of accepting the special order? Please answer to 2 decimal places. If accepting the order will generate a loss, be sure to add a minus/negative before your answer.
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