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Assume that a Busch's soup plant is running at 95% of its monthly capacity. Busch's has just received a special order to produce 20,000 cases
Assume that a Busch's soup plant is running at 95% of its monthly capacity. Busch's has just received a special order to produce 20,000 cases o chicken noodle soup or a national supermarket. The supermarket will sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Busch's an extra $4,000 in total to design. The supermarket has offered to pay only $23.00 per case, which is well un Busch's normal sales price. Costs at the current production level (855,000 cases) are as follows: (Click the icon to view the table.) 1. Is there enough excess capacity to fill this order? 2. Will Busch's operating income increase or decrease if it accepts this special order? By how much? Is there enough excess capacity to fill this order? If the plant is producing 855,000 cases a month, yet only Operating at 95% of capacity, it must have a capacity level of cases per month. This means the plant has excess capacity of fill this special order Will Busch's operating income increase or decrease if it accepts this special order? By how much? Complete the following incremental analysis to help you make your recommendation. (Use parentheses or a minus sign to indicate Choose from any list or enter any number in the input fields and then continue to the next
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