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Required Information [The following information applles to the questions displayed below.] Mel's Meals 2 Go purchases cookles that it includes in the 10,000 box lunches
Required Information [The following information applles to the questions displayed below.] Mel's Meals 2 Go purchases cookles that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookles for $0.60 each but is considering making them instead. Mel's can bake each cookie for $0.20 for materials, $0.15 for direct labor, and $0.45 for overhead without Increasing its capacity. The $0.45 for overhead includes an allocation of $0.30 per cookie for fixed overhead. However, total fixed overhead for the company would not increase if Mel's makes the cookles. Mel himself has come to you for advice. "It would cost me $0.80 to make the cookles, but only $0.60 to buy. Should 1 continue buylng them?" Materlals and labor are varlable costs, but varlable overhead would be only $0.15 per cookle. Two cookles are put into every lunch. ?equired: 1. Prepare a schedule to show the differential costs per cookle. (Enter your answers to 2 decimal places. Select option "higher" or lower", keeping Status Quo as the base. Select "none" If there Is no effect.)
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