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Brief Exercise 13-2 (Algo) Special order decision LO 13-2 Big Sky Farms sells gift baskets containing a variety of fruits and nuts for $70 each.
Brief Exercise 13-2 (Algo) Special order decision LO 13-2 Big Sky Farms sells gift baskets containing a variety of fruits and nuts for $70 each. Tanya Williams contacted Big Sky Farms to see if they would be willing to provide 370 gift baskets for a special price of $20 per basket. Big Sky Farms has the capacity to make 1,270 gift baskets and is presently working on 700 of them. Big Sky Farms estimates the cost of a gift basket to include unit-level materials, $8; unit-level labor, \$8; and an allocated portion of facility-level overhead, \$15. Required: Calculate the contribution to profit from the special order. Should Big Sky Farms accept or reject the special order to sell 370 gift baskets for $20 each
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