Question: 19. CLO Bakery is considering adding a new product line to its baked goods business. The manager is considering adding either pies or specialty cakes
19. CLO Bakery is considering adding a new product line to its baked goods business. The manager is considering adding either pies or specialty cakes to its offerings. Below is a summary of the costs of each: Pies Specialty Cakes Direct Materials $ 2.00 Direct Materials $ 2.50 Direct Labor 1.25 Direct Labor $ 1.25 Supervisor's Salary $ 35,000.00 Supervisor's Salary $ 35,000.00 Advertising $ 20,000.00 Advertising $ 32,000.00 Based on this information, which costs are considered relevant in assessing alternatives? a. Direct materials, supervisor's salary b. Direct materials, direct labor c. Direct materials, advertising d. Supervisor's salary, advertising
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