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Question 2 : Look - N - Cook sells uncooked pies that can be heated at home and taste delicious. An income statement for a
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LookNCook sells uncooked pies that can be heated at home and taste delicious. An income statement for a typical month is given below.
A local car dealer, who loves LookNCook pies, has offered to buy pies for an upcoming promotion event. While the normal selling price is $ per pie, the dealer has offered $ each citing the large volume of the order as the reason for cutting the price.
Advice LookNCook on whether to accept or reject this special order and what is the effegt on the company's income, assuming regular sales are unaffected.
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