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(Solution Download) Rumba Dance Hall has offered to buy from Muy Bueno Bakery 100 of their chocolate cakes for $25 each.


 

 

 

 

 

 

 

Rumba Dance Hall has offered to buy from Muy Bueno Bakery 100 of

 

their chocolate cakes for $25 each. No variable selling costs would

 

need to be paid, but special packaging of $100 will have to be

 

added. Normally, Muy Bueno sells their cakes at $35 each. Their

 

costs per cake are: materials, $12; direct labor, $5; variable

 

factory overhead, $3; fixed factory overhead, $2; and variable

 

selling costs, $4. How much net differential income or loss will

 

Muy Bueno make if they accept this offer?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a. $2,400

 

 

 

 

 

 

 

 

 

 

b. $200

 

 

 

 

 

 

 

 

 

 

c. $400

 

 

 

 

 

 

 

 

 

d. $2,500

 

 

 


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