Missy's Cupcake Company's normal price per cupcake is $4.00. They receive a special request from the local elementary school requesting 500 cupcakes at a price of $2.50 per cupcake. Missy can accommodate the special order without excess fixed costs. Missy also obtained the following information: Fixed Manufacturing Costs at capacity are $1,000, additional Selling and Administrative Costs for the special order are $50, and Total Variable Costs per cupcake are $1.00. Should Missy accept or reject the special order, and why should she either accept or reject?

Answer rating: 100% (QA)

Should Missy Accept or Reject the Special Order Missy should accept the special order Heres why 1 Co... View the full answer