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The Sweet Factory Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet
The Sweet Factory 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 Factory Company provides the following data for the year: EB (Click the icon to view the data.) The Sweet Factory Company receives an offer to produce 11000 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 Sweet Factory Company should accept for the order? Explain why. The minimum selling price that Sweet Factory 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. Cases of candy produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs 1,200,000 cases 28.00 per case 11.00 per case 7,000,000 per year 2.00 per case 3,600,000 per year
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