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Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the pr year was: Revenues Direct materials $750,000
Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the pr year was: Revenues Direct materials $750,000 324,000 Direct labor Manufacturing overhead (fixed) Manufacturing overhead (variable) 60,000 131,000 84,000 At the start of the current year, Marcotti received a special order for 14,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customer's logo. This order will not affect any of Marcotti's other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? < Yes profit will increase by $ Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: Revenues Direct materials Direct labor Manufacturing overhead (fixed) $750,000 324,000 60,000 Manufacturing overhead (variable) 131,000 84,000 At the start of the current year, Marcotti received a special order for 14,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customer's logo. This order will not affect any of Marcotti's other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? < Yes profit will increase by
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