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Best Cupcakes Inc. produces a variety of high$-$quality cupcakes. The company just received a special order to produce $400$ cupcakes with a modified flavour and fr Each regular cupcake costs $$3$ to produce $($ $$2$ in total for variable costs and $$1$ for allocated fixed costs that are common to the company$).$ A regular cupcake is pric $$6.$ Extra costs for the modified cupcakes would be as follows:

Extra colouring and flavour required for the modified cupcakes cost $$0\mathrm{.}60$ per cupcake.

A new shape of baking mould will need to be purchased for $$200($a one$-$time cost$).$

The price charged for a modified cupcake is $$7\mathrm{.}25$ each. Best Cupcakes is currently operating at full capacity, so the production and sale of a regular cupcake mus given up for each modified cupcake produced and sold.

Should the company accept the order for the modified cupcakes?

Do not enter dollar signs or commas in the input boxes.

Round all answers to $2$ decimal places.

Foregone Contribution Margin per Cupcake $

Variable Cost per Cupcake :

Fixed Cost per Cupcake $

Total Relevant Costs $

Accept or Reject: