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Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity - based costing system with three activity cost pools. Complexity
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activitybased costing system with three activity cost pools. ComplexityRelated cost pool is $ per tier. Cakes with more tiers are more complex. Finally, the activity rate for the OrderRelated activity cost pool is $ per order. Each wedding involves one order for a cake. The activity rates ingredients such as flour, sugar, eggs, and separately.
Data concerning two recent orders appear below:
tabletableEricsonWeddingtableHauptWeddingNumber of reception guests,Number of tiers on the cake,
Assuming that the company charges $ for the Haupt wedding cake, what would be the overall margin on the order?
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