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Stahlbush Island Farms grows organic vegetables and sells them to local restaurants after processing. The farm s leading product is Salad - Delight , which

Stahlbush Island Farms grows organic vegetables and sells them to local restaurants after processing. The farms leading product is Salad-Delight, which is a mixture of organic green salad ingredients prepared and ready to serve. Salad - Delight Current Revenue & Cost Structure Unit ( bag )Selling Price $ 30.75 Variable Cost per unit $20.70( includes $ 1.75delivery charge. ) Average Total Cost per unit $ 25.25 Because the vegetables are perishable and Stahlbush Island Farms is experiencing a large crop, the farm has extra capacity. A representative of a restaurant association in another city has offered to buy fresh salad stock from the company to supplement its regular supply during an upcoming 'foodie' festival. The restaurant association wants to buy 2,500 bags for the festival at a price of $23.55 per bag. Delivery of this special order to the festival is estimated to cost Stahlbush Island Farms $2,200 in total. It can meet most of the order with excess capacity but would sacrifice 925 bags of regular sales to fill this special order. Karla is the owner of Stahlbush Island Farms and needs help in making the decision. As Salad-Delight is a mixed ingredient offering, she has mixed feelings about accepting the order. Show a differential analysis of accepting the special order. This analysis must include the increase/(decrease) in profit/(loss) of accepting the special order.

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