Dinora sells pupusas (a Salvadoran snack food) for $1 each. She spends $80 on ingredients and two

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Dinora sells pupusas (a Salvadoran snack food) for $1 each. She spends $80 on ingredients and two hours to make 350 pupusas. On a typical day, she sells 300 pupusas and gives away the rest to her family and friends. A long-standing customer gives Dinora the opportunity to supply 350 pupusas to a party at $0.90 each. Dinora has to spend $25 to transport the pupusas to the customer's house. Dinora cannot both accept this opportunity and sell the pupusas at her usual location.
Required:
a. List the options that Dinora faces in making this decision.
b. Are Dinora's revenues relevant for this decision?
c. Are Dinora's expenditures on ingredients relevant for the decision?
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Managerial Accounting

ISBN: 978-1118385388

2nd edition

Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle

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