Minnies Soup plant is running at 52% of its monthly capacity. Minnies Soup plant has...
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Accounting
Minnies Soup plant is running at of its monthly capacity. Minnies Soup plant has just received a special order to produce cases of creamy potato soup for a statewide supermarket. The supermarket will sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Minnies Soup plant an extra $ in total to design. The supermarket has offered to pay only $ per case, which is well under Minnies normal sales price.
Costs at the current production level cases are as follows:
Manufacturing Costs Total Cost Cost per case
Direct Materials $ $
Direct Labor
Variable MOH
Fixed MOH
Total $ $
If Minnies Soup plant accepts the offer, profits will:
Select one:
a
Increase by
b
Increase by $
c
Decrease by
d
Decrease by $
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