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capacity to manufacture and sell 35,000 crates per month. The following information is available for the factory. $ 26.00 Sales price per crate Variable cost
capacity to manufacture and sell 35,000 crates per month. The following information is available for the factory. $ 26.00 Sales price per crate Variable cost per crate: Direct materials Direct labor Variable overhead Fixed costs per month 5.50 10.50 3.60 $117,000.00 Boys and Girls of Canada is a not-for-profit organization that raises funds each year by selling popcorn door-to-door. It offers to pay Poppycrock $22 per crate for a special-order batch of 5,000 crates. The special-order popcorn would include a unique label with information about the Boys and Girls of Canada. The additional cost of the label is estimated at $1.00 per crate. In addition, the variable overhead for these special-order crates would decrease by $0.50 because there would be no distribution costs. a. What is the incremental cost of creating a normal crate of popcorn? A special-order crate of popcorn? (Round your answers to 2 decimal places.) b-1. What is the impact on Poppycrock's monthly operating profit if it accepts the offer and it is producing and distributing 30,000 normal crates per month? b-2. What is the opportunity cost of not accepting the offer? C-1. What is the impact on Poppycrock's monthly operating profit if it accepts the offer and it is producing and selling 35,000 normal crates per month? c-2. What is the opportunity cost of accepting the offer? Incremental unit cost of creating a normal crate $ Incremental unit cost of creating a special-order crate | $ b-1. Impact on operating profit b-2. Opportunity cost $ C-1. Impact on operating profit c-2. Opportunity cost 19.60 20.10 9,500 Increase 9,500 E Decrease
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