Q3

Lake Shore Inc. (LSI) manufactures several specialized high quality "creams" used by icecream and gelalo manufacturers. Because of LSI special processes, high quality, precise and consistent ingredients, LSI often receives special crders from gelato companies looking at introducing new products or when those companies aiso receive higher than expected demand. For each type of specialized cream produced, LSI has formulated the precise mix to yiold high qualify icecreams and gelato. LSI's operating is shown below. Gelato Supreme has asked LSI to deliver a special order with quantisies and price as outined in the data below. LSI's production costs would not change, however, no variable selling costs will be incurred on the special order. There will alsobe a one-tme special packaging charge also listed below. LSi can process the special order in two equal batches. And LSi does not anticipate any incremental batch processing costs since most of these are fixed costs. The following information is provided about LSI's current operations: Sales and nroduetinn rnet data for on non hane nar ham. Note: No marketing costs would be associated with the special order. Since the order would be used in research and consistency is critical, Gelato Supreme requires that L.SI fil the entire order of 5.000 pails. Lake Shore Inc. (LSI) manufactures several specialized high quality "creams" used by icecream and gelalo manufacturers. Because of LSI special processes, high quality, precise and consistent ingredients, LSI often receives special crders from gelato companies looking at introducing new products or when those companies aiso receive higher than expected demand. For each type of specialized cream produced, LSI has formulated the precise mix to yiold high qualify icecreams and gelato. LSI's operating is shown below. Gelato Supreme has asked LSI to deliver a special order with quantisies and price as outined in the data below. LSI's production costs would not change, however, no variable selling costs will be incurred on the special order. There will alsobe a one-tme special packaging charge also listed below. LSi can process the special order in two equal batches. And LSi does not anticipate any incremental batch processing costs since most of these are fixed costs. The following information is provided about LSI's current operations: Sales and nroduetinn rnet data for on non hane nar ham. Note: No marketing costs would be associated with the special order. Since the order would be used in research and consistency is critical, Gelato Supreme requires that L.SI fil the entire order of 5.000 pails