Question 14

1. Brewed Awakenings, Inc., has received a special order from a customer to buy 1,000 pounds for $6 per pound. Brewed Awakenings has enough idle capacity to accept the order without incurring any additional fixed costs.

   Identify each of the items as relevant or irrelevant for this special order decision.

The special $6 selling price per pound

The $8 normal selling price per pound

Coffee beans at a cost of $3 per pound

Wages of $0.50 per pound

Variable overhead cost of $1 per pound

Allocated fixed overhead costs

A.	Relevant
B.	Irrelevant