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Instructions Cost Beha... Mulitple P.. Relevant C... Pricing Fixed w 1 Name Current Offer Total Lincoln Company currently sells 1000 loaves of fresh sourdough bread
Instructions Cost Beha... Mulitple P.. Relevant C... Pricing Fixed w 1 Name Current Offer Total Lincoln Company currently sells 1000 loaves of fresh sourdough bread every morning at a price of $5 per loaf 6 The average cost for each loaf is $3.50, and Lincoln does have plenty of capacity to produce more loaves of bread 8 A local supemarket, for a one-time holiday deal, offers to buy 200 loaves of bread at $2. The new average cost for 1200 loaves Unit Price # Units 1000 Average Cost 3.5 200 3.1 3720 Total Cost 3500 0 would then be $3.10 per loaf. UVC Fxed Cost 1.1 11 Please calculate the unit variable cost, fixed cost and overall proftability for this new deal. 12 Average Cost-Total Cost/Quantity UVC = Change in Total Cost/ Change in Quantity Total Cost = Red Cost + UVC X Quantity 17 Would you accept this deal-why or why not (one to two sentences should 19 be sufficient)? 29 32
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