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SPI-K bakes gingerbread cookies and sells them by the dozen. During the holiday season, they bake 1,000 dozen cookies. They can sell the plain, undecorated
SPI-K bakes gingerbread cookies and sells them by the dozen. During the holiday season, they bake 1,000 dozen cookies. They can sell the plain, undecorated cookies ("as is") for $2 per dozen. If they decorate the cookies at an additional cost of $1 per dozen, each decorated dozen could be sold for $3.50. Should SPI-K sell the cookies undecorated ("as is") or should the cookies be decorated ("processed further")? SPI-K should decorate the cookies since operating income will be higher by $500 than if they sell them undecorated ("as is"). OSPI-K should decorate the cookies since operating income will be higher by $3.500 than if they sell them undecorated ("as is"). OSPI-K should sell undecorated cookies ("as is") since operating income will be higher by 5500 than if they sell them decorated ("processed further). OSPI-K should sell undecorated cookies ("as is") since operating income will be higher by $3,500 than if they sell them decorated ("processed further)
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