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Your answer is partially correct. After visiting with Andrea, Brad received a fax from one of London's top bakeries. The bakery's normal box supplier suffered some fıre damage and is unable to ship the bakery's order of 11,200 boxes this month. The bakery's owner is asking if Blossom can fill a onetime rush order of 11,200 boxes printed with the bakery's logo. The bakery is willing to pay a 10% price premium to expedite the order. If Blossom accepts the order, it will incur $ 820 in export taxes and shipping. Calculate the Profit on special order. 2$ Profit on special order 783 Should Blossom accept the London bakery's offer? Blossom should * accept the special order.

Your answer is partially correct. After visiting with Andrea, Brad received a fax from one of London's top bakeries. The bakery's normal box supplier suffered some fıre damage and is unable to ship the bakery's order of 11,200 boxes this month. The bakery's owner is asking if Blossom can fill a onetime rush order of 11,200 boxes printed with the bakery's logo. The bakery is willing to pay a 10% price premium to expedite the order. If Blossom accepts the order, it will incur $ 820 in export taxes and shipping. Calculate the Profit on special order. 2$ Profit on special order 783 Should Blossom accept the London bakery's offer? Blossom should * accept the special order.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 4BE: Blakes Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made...
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(c) Your answer is partially correct. After visiting with Andrea, Brad received a fax from one of London's top bakeries. The bakery's normal box supplier suffered some fire damage and is unable to ship the bakery's order of 11,200 boxes this month. The bakery's owner is asking if Blossom can fill a onetime rush order of 11,200 boxes printed with the bakery's logo. The bakery is willing to pay a 10% price premium to expedite the order. If Blossom accepts the order, it will incur $ 820 in export taxes and shipping. Calculate the Profit on special order. $ 783 Profit on special order Should Blossom accept the London bakery's offer? Blossom should accept the special order.
Transcribed Image Text:(c) Your answer is partially correct. After visiting with Andrea, Brad received a fax from one of London's top bakeries. The bakery's normal box supplier suffered some fire damage and is unable to ship the bakery's order of 11,200 boxes this month. The bakery's owner is asking if Blossom can fill a onetime rush order of 11,200 boxes printed with the bakery's logo. The bakery is willing to pay a 10% price premium to expedite the order. If Blossom accepts the order, it will incur $ 820 in export taxes and shipping. Calculate the Profit on special order. $ 783 Profit on special order Should Blossom accept the London bakery's offer? Blossom should accept the special order.
Blossom Packaging Company is a leading manufacturer of cardboard boxes and other product packaging solutions. One of the company's major product lines is custom-printed cake boxes that are sold to some of the country's best known bakeries at a price of $ 0.50 per box. To maintain its high-quality image, Blossom uses a thick premium coated paper for all of its cake boxes. Based on annual production of 1,000,000 boxes, Blossom's cost for producing a box is as follows: Раper $0.14 Ink 0.03 Direct labor 0.05 Variable overhead 0.09 Fixed overhead 0.09 Total cost per box $0.40 Sarah Allen, a recent graduate of the Culinary Institute of America, is opening a new bakery in her hometown. She recently contacted Brad Lail, Blossom's top salesperson, about purchasing cake boxes for her new store. Brad described Blossom's boxes, emphasizing the high-quality paper and the unique printing process the company uses. Andrea is looking for ways to lower her operating costs, so after hearing Brad describe Blossom's boxes, she told him that all she needed was a simple, unprinted box. Andrea also told Brad that she needs 11,200 boxes and is willing to pay $0.24 per box. (a) Your answer is correct. Based on Andrea's offer of $ 0.24 per box for an unprinted box, should Blossom accept Andrea's order? Blossom currently has excess production capacity and can easily accommodate Andrea's order in the production schedule. Blossom should not accept the order.
Transcribed Image Text:Blossom Packaging Company is a leading manufacturer of cardboard boxes and other product packaging solutions. One of the company's major product lines is custom-printed cake boxes that are sold to some of the country's best known bakeries at a price of $ 0.50 per box. To maintain its high-quality image, Blossom uses a thick premium coated paper for all of its cake boxes. Based on annual production of 1,000,000 boxes, Blossom's cost for producing a box is as follows: Раper $0.14 Ink 0.03 Direct labor 0.05 Variable overhead 0.09 Fixed overhead 0.09 Total cost per box $0.40 Sarah Allen, a recent graduate of the Culinary Institute of America, is opening a new bakery in her hometown. She recently contacted Brad Lail, Blossom's top salesperson, about purchasing cake boxes for her new store. Brad described Blossom's boxes, emphasizing the high-quality paper and the unique printing process the company uses. Andrea is looking for ways to lower her operating costs, so after hearing Brad describe Blossom's boxes, she told him that all she needed was a simple, unprinted box. Andrea also told Brad that she needs 11,200 boxes and is willing to pay $0.24 per box. (a) Your answer is correct. Based on Andrea's offer of $ 0.24 per box for an unprinted box, should Blossom accept Andrea's order? Blossom currently has excess production capacity and can easily accommodate Andrea's order in the production schedule. Blossom should not accept the order.
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