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Question Help The Sweet and Salty Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each
Question Help The Sweet and Salty Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak demand during the "candy season" from Halloween through Valentine's Day. During the other six months of the year, the manufacturing facility operates at 75% of capacity. The Sweet and Salty Company provides the following data for the year: B Click the icon to view the data.) The Sweet and Salty Company receives an offer to produce 11000 cases of candy for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price The Sweet and Salty Company should accept for the order? Explain why. The minimum selling price that Sweet and Salty Company should accept for the special order is the In this situation, the are not relevant because they will be incurred whether the order is accepted or not. is appropriate in this situation. i Data Table X Cases of candy produced and sold 1,800,000 cases Sales price $37.00 per case Variable manufacturing costs 7.00 per case 6,700,000 per year Fixed manufacturing costs Variable selling and administrative costs 2.00 per case Fixed selling and administrative costs 3,700,000 per year Print Done
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