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BACC011 Quiz 5- Requires Respondus LockDown Browser
Short answer
AquaCool produces and sells premium bottled water sourced from natural springs. Each bottle sells for $5. It costs $1.20 in variable costs and $1.80 in fixed costs to make each bottle. AquaCool has received a special order from a local community group. They would like to order 1,346 bottle for $2.36 each. AquaCool has the capacity to make this order. If AquaCool accepts this special order, how much will the profit increase or decrease by? Round your answer to the nearest dollar (no decimal places). If accepting the special order will decrease the profit, make sure you include a minus/negative sign before your answer.
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Step-by-Step Analysis
To evaluate whether AquaCool should accept the special order, I’ll perform an incremental analysis focusing on the additional profit.
First, identify the relevant incremental revenue: the special order offers 1,346 bottles at a price of $2.36 each, so total incremental revenue = 1,34......Login to view full explanationLog in for full answers
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AquaCool produces and sells premium bottled water sourced from natural springs. Each bottle sells for $5. It costs $1.20 in variable costs and $1.80 in fixed costs to make each bottle. AquaCool has received a special order from a local community group. They would like to order 1,188 bottle for $2.5 each. AquaCool has the capacity to make this order. If AquaCool accepts this special order, how much will the profit increase or decrease by? Round your answer to the nearest dollar (no decimal places). If accepting the special order will decrease the profit, make sure you include a minus/negative sign before your answer.
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