question archive Group Discussion Atikah's Donuts budgets the following costs for the production of 40
Group Discussion Atikah's Donuts budgets the following costs for the production of 40
Subject:ManagementPrice: Bought3
Group Discussion
Atikah's Donuts budgets the following costs for the production of 40.000 boxes of donuts next year: Rent. $20,000: other ?xed costs, $6.000: direct materials. $54,000. and direct labor, $56,000. The normal selling price is $4.00 per box. A cafeteria from UniKL Mites has offered to pay Atikah's $3.00 per box to supply them with 10,000 boxes of donuts during the year. Assuming that Atikah's has the capacity to ?ll this order along with their other production and that accepting this order will not cause problems with any of their other customers.
(a) Analyze the information and assist Atikah's to make a decision.
