Leila Ahmadi wants to purchase a package of shredded cheese at a local store for taco night. Is it better for her to pay $2.72 for 16 ounces or $3.84 for 24 ounces of this product? Explain your answer.

Leila Ahmadi wants to purchase a package of shredded cheese at a local store for taco night. Is it better for her to pay $2.72 for 16 ounces or $3.84 for 24 ounces of this product? Explain your answer.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1TP: Seda Sarkisian makes wedding cakes from her home. A customer has requested two duplicate wedding...

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Seda Sarkisian makes wedding cakes from her home. A customer has requested two duplicate wedding cakes: one for the wedding and one to be frozen for their anniversary. The couple has offered $400 for both cakes instead of $500 ($250 each). The cost information to make one cake is shown. A. What is the cost for the first cake? B. What cost would not be included in the second cake? C. What is the cost of the second cake? D. What would be the total cost of this order if the offer was accepted? E. How much profit will Seda be recording for this special order? F. If your company policy is to always have a 15% profit on all order, would you still accept this order? G. If you would not accept the order, what price would you negotiate?