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Question 8 Pamela in Bamplona makes bull-repellent scent according to a traditional Spanish recipe, which normally sells at 69 (Euros) per unit. Normal production volume

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Question 8 Pamela in Bamplona makes bull-repellent scent according to a traditional Spanish recipe, which normally sells at 69 (Euros) per unit. Normal production volume is 10,000 ounces per month. Average cost is 65 per ounce, of which 62 is direct material and E1 is variable conversion cost. This product is seasonal. After July, demand for this product drops to 6,000 ounces monthly. In November, Umberto offers to buy 1,800 ounces for E8,100. If Pamela accepts the order, she must design a special label for Umberto at a cost of E800. Each label will cost 30 cents to make and apply. Pamela should: accept the order, at a gain of C625 reject the order, at a loss of (1,875 O reject the order, at a loss of 62,375 O accept the order, at a gain of (1,360 reject the order, the new selling price is less than the average cost per ounce

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