Poppycrock, Inc., manufactures large crates of microwaveablepopcorn that are typically sold to distributors. Its...

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Poppycrock, Inc., manufactures large crates of microwaveablepopcorn that are typically sold to distributors. Its main factoryhas the capacity to manufacture and sell 35,000 crates per month.The following information is available for the factory.
Sales price per crate $ 26.00
Variable cost per crate: Direct materials 5.50
Direct labor 10.50 Variable overhead 3.80
Fixed costs per month $ 101,000.00
Boys and Girls of Canada is a not-for-profit organization thatraises funds each year by selling popcorn door-to-door. It offersto pay Poppycrock $22 per crate for a special-order batch of 5,000crates. The special-order popcorn would include a unique label withinformation about the Boys and Girls of Canada. The additional costof the label is estimated at $1.00 per crate. In addition, thevariable overhead for these special-order crates would decrease by$0.50 because there would be no distribution costs.
a. What is the incremental cost of creating a normal crate ofpopcorn? A special-order crate of popcorn? (Round your answers to 2decimal places.)
b-1. What is the impact on Poppycrock's monthly operating profitif it accepts the offer and it is producing and distributing 30,000normal crates per month?
b-2. What is the opportunity cost of not accepting theoffer?
c-1. What is the impact on Poppycrock's monthly operating profitif it accepts the offer and it is producing and selling 35,000normal crates per month?
c-2. What is the opportunity cost of accepting the offer?

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a Incremental Cost Normal Crate Special Order Crate Direct Material 550 550 Direct Labour 1050 1050 Variable OH 380 330 Additional Cost of label 1 Incremental Cost 1980 2030 The variable overhead for these specialorder crates would decrease by 050 because there would be no distribution costs Hence 380 050 330 b1 Impact on Poppycrocks See Answer

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In: AccountingPoppycrock, Inc., manufactures large crates of microwaveablepopcorn that are typically sold to distributors. Its main...Poppycrock, Inc., manufactures large crates of microwaveablepopcorn that are typically sold to distributors. Its main factoryhas the capacity to manufacture and sell 35,000 crates per month.The following information is available for the factory.Sales price per crate $ 26.00Variable cost per crate: Direct materials 5.50Direct labor 10.50 Variable overhead 3.80Fixed costs per month $ 101,000.00Boys and Girls of Canada is a not-for-profit organization thatraises funds each year by selling popcorn door-to-door. It offersto pay Poppycrock $22 per crate for a special-order batch of 5,000crates. The special-order popcorn would include a unique label withinformation about the Boys and Girls of Canada. The additional costof the label is estimated at $1.00 per crate. In addition, thevariable overhead for these special-order crates would decrease by$0.50 because there would be no distribution costs.a. What is the incremental cost of creating a normal crate ofpopcorn? A special-order crate of popcorn? (Round your answers to 2decimal places.)b-1. What is the impact on Poppycrock's monthly operating profitif it accepts the offer and it is producing and distributing 30,000normal crates per month?b-2. What is the opportunity cost of not accepting theoffer?c-1. What is the impact on Poppycrock's monthly operating profitif it accepts the offer and it is producing and selling 35,000normal crates per month?c-2. What is the opportunity cost of accepting the offer?