SPECIAL ORDER ANALYSIS The athletic director of a local high school has approached Bene Petit with a special offer. The director would like to promote meals to athletes and their families to encourage healthy eating and as a fund-raising opportunity. The meals would be delivered directly to the school, where families would pick them up and pay the school directly. The school would then pay Bene Petit. The following additional details are available about the special order: • The athletic director has requested a 40% discount off the normal price for this bulk order. Families who purchase the meals would receive ½ of the discount and the school would put the other 20% into a fund to support an athlete’s award banquet. • The fund-raiser would run for 3 months (12 weeks) and the director estimates that about 30 families would order 3 family-sized meals per week. • Variable manufacturing costs for a family sized meal are $5.20 for a customer meal and $1.25 for a donated meal. • Variable delivery expenses on a normal order is $2.00 per customer order • Weekly delivery expense is estimated at $50 for this special order. • Bene Petit has the capacity to deliver donated meals without increasing delivery expense to community partners. • Bene Petit has the capacity to fill the order without disrupting normal operations, but estimates that at least 5 of the families are already Bene Petit customers who currently order 4 family sized meal per week. • Even if the special order is not profitable, it could be counted as part of Bene Petit’s social mission to contribute to the local community.

b) How much additional revenue will Bene Petit earn on the 12-week special order?

Answer rating: 100% (QA)

The athletic director has requested a 40 discount off the normal price for this bulk orde... View the full answer