Minnie$$s Soup plant is running at $52\%$ of its monthly capacity. Minnie$$s Soup plant has just received a special order to produce $720$ cases of creamy potato soup for a statewide supermarket. The supermarket will sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Minnie$$s Soup plant an extra $$900$ in total to design. The supermarket has offered to pay only $$19\mathrm{.}00$ per case, which is well under Minnie$$s normal sales price. Minnie's Soup plant is running at $52\%$ of its monthly capacity. Minnie's Soup plant has just received a special order to produce $720$ cases of creamy potato soup for a statewide supermarket. The supermarket will

sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Minnie's Soup plant an extra $$900$ in total to design. The supermarket has offered to

pay only $$19\mathrm{.}00$ per case, which is well under Minnie's normal sales price.

Costs at the current production level $(810$ cases$)$ are as follows:

If Minnie's Soup plant accepts the offer, profits will:

Select one:

a$.$ Decrease by $$1,980$

b$.$ Increase by $$1,980$

c$.$ Decrease by $$2,880$

d$.$ Increase by $$2,880$

Costs at the current production level $(810$ cases$)$ are as follows:

Manufacturing Costs Total Cost Cost per case

Direct Materials $$8,100$ $$10\mathrm{.}00$

Direct Labor $2,4303\mathrm{.}00$

Variable MOH $1,6202\mathrm{.}00$

Fixed MOH $4,8606\mathrm{.}00$

Total $$17,010$ $$21\mathrm{.}00$

If Minnie$$s Soup plant accepts the offer, profits will:

Select one:

a$.$

Decrease by $$1,980$

b$.$

Increase by $$1,980$

c$.$

Decrease by $$2,880$

d$.$

Increase by $$2,880$