Smiles for All $($SFA$)$ is a catering company specializing in large corporate events. $5P$ to produce $1,000$ custom gift baskets for a large event that they aro SFA is willing to pay $$85\mathrm{.}00$ for each custom basket. The cost the hosting on Dece $$12\mathrm{.}55$ each. If this special order is accepted, CDC will have to produce a custom the production of the SFA special order. During this time, no dedicate flve $(5)$ day to be produced.

Questions

a$)$ If CDC accepts the special order, what will be the impact to their Operating considerations should CDC consider before accepting this offer?

Assume that the special order from SFA is only for $800$ units and CDC coule their regular gift baskets. If CDC accepts the special order of $800$ units, wh their Operating Income?

Assume that in order for CDC to accept the special order, they will have chocolate mixer. Their current mixer has a book value of $46,500,$ a remal years and a residual value of $$2,000.$ The new industrial mixer would eo educe the variable cost of the special order items by $50\%.$ The new mis emaining useful life of five years at which time it could be sold for $$0.$