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Fruit Bouquet Inc manufactures fruit bouquets. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility
Fruit Bouquet Inc manufactures fruit bouquets. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 60% of capacity for the other six months of the year. The company has provided the following data for the year: No. of units produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs $ Fixed selling and administrative costs $ Fruit Bouquet Inc. receives an offer to produce 7000 fruit bouquets for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? $5 $15
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