Sweet Wave Bakery normally produces sourdough bread on a regular basis. It sells approximately $35,000$ of this type of bread each year at $$3\mathrm{.}90$ per loaf. The variable costs for each loaf of bread are $$2\mathrm{.}30.$ Sunshine bakery in Miami has not been able to produce enough sourdough bread loaves to meet customer demands. They would like to purchase $15,000$ loaves for $$2\mathrm{.}60$ per loaf. Sweet Wave$$s sourdough bread line is near full capacity. In order to accept the order from Sunshine, Sweet Wave would have to temporarily add a $3$rd shift to their sourdough line. This would increase the variable manufacturing costs by $$\mathrm{.}30$ per loaf but variable selling costs would decrease by $\mathrm{.}20$ per loaf.

A restaurant has requested to purchase a special order of the sourdough bread. They are requesting $2,000$ loaves. Sweet Wave has the capacity for this order without adding the additional shift. The restaurant is willing to pay $$3\mathrm{.}10$ per loaf of bread.

Instructions

A$.$ Given the information above:

What are the consequences of Sweet Wave agreeing to provide the $15,000$ units to Sunshine Bakery? Would this be a wise $$special order$$ to accept?

For negative answers, include $"-"$ before the response.

Reject Order Accept Order Net Income Increase$/$Decrease

Revenue $$0$ $Answer $1$ Question $1$

$Answer $2$ Question $1$

Cost $$0$ $Answer $3$ Question $1$

$Answer $4$ Question $1$

Net Income $$0$ $Answer $5$ Question $1$

$Answer $6$ Question $1$

Should Sweet Wave accept the special order?

Answer $7$ Question $1$

Instructions

B$.$ Should Sweet Wave accept the special order from the restaurant?

For negative answers, include $"-"$ before the response.

Reject Order Accept Order Net Income Increase$/$Decrease

Revenue $$0$ $Answer $8$ Question $1$

$Answer $9$ Question $1$

Cost $$0$ $Answer $10$ Question $1$

$Answer $11$ Question $1$

Net Income $$0$ $Answer $12$ Question $1$

$Answer $13$ Question $1$

Should Sweet Wave accept the special order from the restaurant?

Answer $14$ Question $1$