Question: Question 2: (one time special order) Al Junidy company manufactures frozen yogurt. Its manufacturing plant has the capacity to produce 100,000 bottle each month. Current
Question 2: (one time special order) Al Junidy company manufactures frozen yogurt. Its manufacturing plant has the capacity to produce 100,000 bottle each month. Current production and sales are 60,000 bottles per month. The current selling price per bottle is $4. Cost information for producing 60,000 bottles Variable costs that vary with the No. of units produced Direct material 90,000 Direct manufacturing labor 60,000 Variable costs (material handling... etc.) that vary with No. of batches. 35,000 (1,000 batches) Fixed cost Fixed manufacturing costs 15,000 Fixed marketing costs 20,000 Total costs 220,000 Assume Al Junidy company has just received a special one-time order for 20,000 bottles at $2.5 per bottle. Accepting the order would not affect the company's regular business neither its Fixed cost. The special order requires Al junidy company to make the bottles in 400 batches of 50 bottles each. Required: Al-Junidy company is considering whether to accept the offer or not. Thus, A. From the table above, name one of the costs that are considered irrelevant for this decision B. Calculate the differential revenue C. Calculate the differential cost D. Based on your previous answers, should Al Junidy company accept the offer or not? (explain why) E. What is the minimum price that might make Al junidy company accept the special one time order
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