JULET Udves UI DE B D E G H 1 j L F K 1 Name: 2 3 4 Lincoln Company currently sells 1000 loaves of fresh sourdough bread every morning at a price of $5 per loaf. 5 6 The average cost for each loaf is $3.50, and Lincoln does have plenty of capacity to produce more loaves of bread. 7 8 A local supermarket, for a one-time holiday deal, offers to buy 200 loaves of bread at $2. The new average cost for 1200 loaves 9 would then be $3.10 per loaf. 10 11 Please calculate the unit variable cost, fixed cost and overall profitability for this new deal. Would you accept this deal--why or why not? What is the key consideration for a special order? 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Instructions Cost Behavior Mulitple Product Break-even Relevant Costs-Special Order Pricing Fixed vs Variable Costs Ready