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The Sweet Treats Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet
The Sweet Treats 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 Treats Company provides the following data for the year. P(Click the icon to view the data.) The Sweet Treats 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 Sweet Treats Company should accept for the order? Explain why. The minimum selling price that Sweet Treats 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. i Data Table - X Cases of candy produced and sold 1,100,000 cases Sales price $ Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs 37.00 per case 16.00 per case 6,400,000 per year 5.00 per case 3,000,000 per year
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