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Cost accounting: relevant costs & revenues Please solve this problem, I attached solution for part 3 as an example Example One Jiaqico has the following

Cost accounting: relevant costs & revenues
Please solve this problem, I attached solution for part 3 as an example image text in transcribed
image text in transcribed
Example One Jiaqico has the following information: Cookies 640 800 S6 S2 $1,100 Brownies Current Volume (boxes) Capacity 750 $7 $2.50 $200 Sales Price Variable Costs Monthly Fixed Costs Cookies Fixed Costs include an allocation of $200 per month of depreciation on ovens and Brownies Fixed Costs include an allocation of $50 per month of depreciation on ovens. All other fixed costs are division-specific and would be eliminated instantly if the division were discontinued Treat each of the following situations separately. 1. Efremco has offered to buy 400 boxes of cookies each month for $5 per box. If Jiaqico accepts this offer, it will eliminate $300 per month in advertising costs. Should Jiaqico accept Efremco's offer? 2. Melvaco has offered to buy 100 boxes of brownies from Jiaqico each month. Melvaco's purchase will not affect Jiaqico's other sales or fixed costs, but it will increase its variable costs $0.50 per box. This increase arises because Melvaco wants the brownies made with a special kind of fine-quality chocolate. What is the minimum price Jiaqico should charge Melvaco for this special order? 3. Marianneco has offered to provide brownies to Jiagico so Jiaqico would only make cookies. Marianneco will charge Jiagico $3,60 per box. Should Jiaqico accept the offer? 4 Jiagico is considering frosting 200 boxes of brownies each month. Total sales of brownies would not increase, it would sell 300 boxes of unfrosted brownies and 200 boxes of frosted brownies each month. The frosted brownies would sell for $8.50 per box. The frosting would cost $0.60 per box of brownies, and direct labor costs would increase by $0.40 per box. Jiaqico plans a promotional campaign for the new frosted brownies that will cost $220 per month. Should Jiagico frost the brownies? 5. Create contribution-format income statements for each situation described above

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