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The Sweet Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak
The Sweet 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 Sweet Company provides the following data for the year. EEB (Click the icon to view the data.) The Sweet Company receives an offer to produce 8000 cases of candy for a special event. This is a one-time opportunity duringa period when the company has excess capacity. What is the minimum selling price The Sweet Company should accept for the order? Explain why The minimum selling price that Sweet 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 is appropriate in this situation. Data Table Cases of candy produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs 1,300,000 cases 30.00 per case 11.00 per case 6,300,000 per year 1.00 per case 3,900,000 per year Print Done
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