Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 21 Aug 2017 My Price 5.00

Cinotti Bread Depot

Cinotti Bread Depot bakes and sells each bagel for $1.25. The cost of producing 600,000 bagels in the prior year was: Revenues $750,000 Direct materials 330,000 Direct labor 66,000 Manufacturing overhead - fixed 132,000 Manufacturing overhead - variable 84,000 At the start of the current year, Cinotti received a special order for 15,000 bagels to be sold for $1.10 per bagel. The company estimates it will incur an additional $700 in total fixed costs in order to lease a special machine needed to bake the bagels in the customer’s logo shape. Also, this order will not affect any of its other operations. Should the company accept the special order? A. No, profit will decrease by $2,950 B. No, profit will decrease by $2,250 C. Yes, profit will increase by $3,800 D. Yes, profit will increase by $500

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Maurice Tutor
(5)
Status NEW Posted 21 Aug 2017 10:08 PM My Price 5.00

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