Cullumber Company is a leading producer of disposable chop sticks and other utensils. One of the company's major product lines is high-quality chop sticks which are sold to some of the country's best Asian restaurants, including large national chains. Each set of chop sticks is sold at a price of $0.90 per pair. To maintain its high-quality image, Cullumber uses a thick premium wood, a special varnish, and individually wraps each pair of chop sticks. Based on annual production of 5,034,000 sets of chop sticks, Cullumber's cost for producing a pair of chop sticks is as follows: Wood $0.20 Varnish 0.17 Direct labor 0.25 Variable overhead 0.23 Fixed overhead 0.35 Total cost per pair $1.20 Sharon Steele is opening a new Asian restaurant in her hometown. She recently contacted one of Cullumber's top salespeople, Simon Green, about purchasing utensils for her new restaurant. Simon described Cullumber's products, emphasizing the high- quality materials and processes the company uses. Sharon is looking for ways to lower her operating costs, so after hearing Simon describe Cullumber's products, she told him that all she wants are 45,000 unwrapped chop sticks. Sharon told Simon she is willing to pay $0.34 per chop stick ($0.68 per pair). (a) (a 1) Based on Sharon's offer of $0.34 per chop stick, calculate Relevant cost. Cullumber currently has excess production capacity and can easily accommodate Sharon's order in the production schedule. (Round answer to 2 decimal places, e.g. 52.75.) Relevant cost of one pair (22) Should Cullumber accept Sharon's order? Cullumber the order. Save for Later Attempts: 0 of 1 used Submit