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The Purple Candy Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to
The Purple Candy 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 through Valentine's Day. During the other six months of the year, the manufacturing facility operates at 75% of capacity. The Purple Candy Company provides the following data for the year: (Click the icon to view the data.) The Purple Candy Company receives an offer to produce 6000 cases of candy for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price The Purple Candy Company should accept for the order? Explain why. The minimum selling price that Purple Candy Company should accept for the special order is the i Data Table In this situation, the are not relevant because they will be incurred whether the order is accepted or not. is appropriate in this situation. Cases of candy produced and sold Sales price 1,400,000 cases $30.00 per case Variable manufacturing costs 6.00 per case Fixed manufacturing costs 6,800,000 per year Variable selling and administrative costs 5.00 per case Fixed selling and administrative costs 3,300,000 per year Print Done
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