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The AmazingCandy Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak

The AmazingCandy Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak demand during the"candy season" from Halloween throughValentine's Day. During the other six months of theyear, the manufacturing facility operates at75% of capacity. The AmazingCandy Company provides the following data for theyear:

Data Table

Cases of candy produced and sold 1,900,000 cases

Sales price $40.00 per case

Variable manufacturing costs 22.00 per case

Fixed manufacturing costs 6,900,000 per year

Variable selling and administrative costs 3.00 per case

Fixed selling and administrative costs 3,100,000 per year

The AmazingCandy Company receives an offer to produce 6000 cases of candy for a special event. This is aone-time opportunity during a period when the company has excess capacity. What is the minimum selling price The AmazingCandy Company should accept for theorder? Explain why.

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