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The Rainbow Candy Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet
The Rainbow 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 th6 year, the mar ufacturing facility operates al 75% ocapacity The Rainbow Candy Company provides lhe folkwng data for the year (Click the icon to view the data.) The Rainbow Candy Company receives an offer to produce 8000 cases of candy for a special svent. This is a one-time opportunity during a period when the company has excess capacity. What is the minimurm selling price The Rainbow Candy Company should accopt for the orer? Explain why Data Table The minimum selling price that Rainbow Candy Company should accept for the special order is the In this situation, the are not relevant because they will be incurred whether the order is accepted or not 1,800,000 cases Cases of candy produced and sold Salles price Variable manufacturing costs Fixed manutechunng costs Variable selling and administrative costs Fixed selling and adrministralive costs is appropriate in this situation 31.00 per S case 13.00 per case 6,100 i0o per year 2.00 per case 3,300,000 per year Print Done
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