Ayayai sells cookies, brownies, and beverages to small local shops. The selling price per brownie is $1.20 and the variable cost is $0.80. The principal of an elementary school asked Ayayai to provide 10 dozen brownies for its spring picnic. The principal wants to buy the brownies at Ayayais cost. Unlike with regular sales, each special order brownie must be delivered in a plastic container to protect it from dust. The containers cost is $0.05 each. The brownies can be prepared ahead of time when workers are not busy.

Ayayai sells cookies, brownies, and beverages to small local shops. The selling price per brownie is $1.20 and the variable cost is $0.80. The principal of an elementary school asked Ayayai to provide 10 dozen brownies for its spring picnic. The principal wants to buy the brownies at Ayayais cost. Unlike with regular sales, each special order brownie must be delivered in a plastic container to protect it from dust. The containers cost is $0.05 each. The brownies can be prepared ahead of time when workers are not busy.

Under the general decision rule for special orders, what is the minimum price per brownie that Ayayais management should accept? (Round all entries to 2 decimal places, e.g. 5.75.)

Price

$ per brownie

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If the principal can pay no more than $0.85 per brownie, should CC take the order? YesNo LINK TO TEXT LINK TO TEXT