Cost accounting: relevant costs & revenues

Please solve example one

Example One Jiaqico has the following information Current Volume (boxes) Capacity Sales Price Variable Costs Monthly Fixed Costs Cookies 640 800 56 $2 Brownies 500 750 57 $2.50 S200 1,100 Cookies Fixed Costs include an allocation of $200 per month of depreciation on ovens and Brownies Fixed Costs include an allocation of S50 per month of depreciation on ovens. All other fixed costs are division-specific and would be eliminated instantly if the division were discontinued Treat each of the following situations separately 1. Efremco has offered to buy 400 boxes of cookies each month for S5 per box. If Jiagico accepts this offer, it will eliminate $300 per month in advertising costs. Should Jiaqico accept Efremoo's offer? 2 Melvaco has offered to buy 100 boxes of brownies from Jiagico each month Melvaco's purchase will not affect Jagico's other sales or fixed costs, but it will increase its variable costs S0.50 per bos. This increase arises because Melvaco wants the brownies made with a special kind of fAne-quality chocolate What is the minimum price Jiaqico should charge Melvaco for this spocial order? 3. Marianneco has offered to provide brownies to Jiaqico so Jiaqjico would only make cookies Marianneco will charge Jiagjico 53 60 per box. Should Jiaqico accept the offer? 4. Jiaqico is considering frosting 200 boxes of brownies each month Total sales of brownies would not increase, i would sell 300 boxes of unfrosted brownies and 200 boxes of frosted brownies each moeth. The frosted brownies would sell for $8 50 per box. The frosting would cost S0 60 per box of brownies, and direct labor costs would increase by $0 40 per box. Jiaqico plans a promotional campaign for the new frosted brownies that will cost $220 per month. Should Jiaqico frost the brownies? 5. Create contribution-format income statements for each situation described above Example Two can only obtain 91 ounces of gold each month Given the following monthly information, what shosuld Jeremyco produce? Sales Price $500 $800 $1000 Market Demand 100 rings per month 50 recklaces per moesh Vc Gold per item Rings Nocklaces Bracelets 0 25 ounce 1.0 ounce 5450 $600