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I need help with the two problems. Thank you! 1. Maksimoy is CEO of her own marketing firm. The firm recently moved from a strip

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I need help with the two problems. Thank you!
1. Maksimoy is CEO of her own marketing firm. The firm recently moved from a strip mall in the suburbs to an office space in a downtown building, in order to make the firm's employees more accessible to clients. Two new clients are interested in using Ella's advertising services but both clients are in the same line of business, meaning that Ella's company can represent only one of the clients. Pampered Pooches wants to hire Ella's firm for a one-year contract for web, newspaper, radio, and direct mail advertising. Pampered will pay $126,000 for these services. Ella estimates the cost of the services requested by Pampered Pooches to be $83,000. Delightful Dogs is interested in hiring Ella to produce mass mailings and web ads. Delightful will pay Ella $94,000 for these services and Ella estimates the cost of these services to be $47.000. Identify any relevant costs, relevant revenues, sunk costs, and opportunity costs that Ella Graham must consider in making the decision whether to represent Pampered Pooches or Delightful Dogs. 2. Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was Revenues Direct materials Direct labor Manufacturing overhead (fixed) Manufacturing overhead (variable) $875,000 425,000 75,000 125,000 90,000 At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customer's request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)

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