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lomemade has been invited to submit a bid to cater a Memorial Day picnic with $60$ servings of four flavors for $40$ pre$-$packaged servings of ice cream. Annie's' average ingredient and packaging costs $($including cup, lid, id stickers$)$ are $$1\mathrm{.}50$ per serving. It would cater the event with one manager, whose is paid an annual salary of $($or an average of $$20\mathrm{.}00$ per hour$),$ and two additional employees who are paid $$8\mathrm{.}00$ per hour. The wedding ects Annie's staff to remain on$-$site for two hours to serve ice cream. The round$-$trip drive time to the event plu etup and breakdown time is $1\mathrm{.}50$ hours. The wedding is $40$ miles round$-$trip and the company pickup truck's el$,$ diesel exhaust fluid, and oil expenses are $$0\mathrm{.}75$ per mile.

ager catering the wedding would also spend $3\mathrm{.}5$ hours manufacturing the ice cream for the picnic and portioni $-$ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor id an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with fapacity and has gathered the following information with respect to its annual fixed overhead:

re Manufacturing overhead $($e$.$g$.,$ equipment

iation, rent, utilities, insurance, etc.$).....$

of servings produced per year $($including mobile

gs$))...$

truck dephaciation, insurance, registration, and

e tax.....

sales equipment depreciation $($e$.$g$.,$ trailer, mobile

$($ and serving tent$)....$

of mobile servings sold per year.... $16,250$

bid price splits into two pieces$-$gross revenue and state and local sales tax $(7\%).$ Then, $5\%$ of the gross reven id to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with d$,3\%$ of the total bid price will be paid to the credit card company for processing the payment.