The Easter Bunny Jelly Bean Company makes jelly beans in 10,000 pound lots that sell for $4.99 per pound. The company management is considering making jelly beans with a new "sparkle" coating. The marketing department thinks the "Sparkle-J Beans" will sell for $6.20 per pound. The process that adds the sparkle coating to regular jelly beans costs $4000 for each 10,000 pound lot and results in 7% of the lot lost due to quality concerns. 1. Prepare a report using the format from the Introduction -- Hordis Notes, that will help management make a decision about the proposed new "Sparkle-J Beans." 2. Interpret your report, that is, what do you recommend to management? (100 words) 3. At what selling price for Sparkle-J Beans would management be indifferent between the new product and regular jellybeans? 4. What are some qualitative issues to consider? from Horngrens Financial and Managerial Accounting

Alternative Alternative B Net Income Increase (Decrease) Incremental Revenue Less Incremental Costs Incremental Net Income (Loss) Alternative Alternative B Net Income Increase (Decrease) Incremental Revenue Less Incremental Costs Incremental Net Income (Loss)