Question: Please help answer this question Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year

 Please help answer this question Marcotti Cupcakes bakes and sells a

Please help answer this question

Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: Revenues $750,000 Direct materials 330,000 Direct labor 60,000 Manufacturing overhead (fixed) 133,000 Manufacturing overhead (variable) 78,000 At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $600 in total fixed costs to lease a special machine that will stamp the cupcakes with the customer's logo. This order will not affect any of Marcotti's other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? Yes profit will increase by $ Feedback Check My Work Compare revenues and expenses related to the special order. Use the per unit revenue amount to determine the total revenue related to the special order. For applicable costs, determine the per unit amounts for the relevant costs (using amounts from 'normal' production aside from the special order) and then apply those costs to the number of units for the special order to determine total expenses

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