Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting QandA 2020

Authors: ACA Simplified

1st Edition

1661682820, 978-1661682828

More Books

Students also viewed these Accounting questions

Question

2. Explain the relationship between a sample and a population.

Answered: 1 week ago