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  3. you own a small company that already produced 600

You own a small company that already produced 600 "Navigating Managerial Accounting" booklets. Production of...

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Accounting

You own a small company that already produced 600 "Navigating Managerial Accounting" booklets. Production of these 600 booklets resulted in a total cost of $1,800. You plan to sell them for $14 each. You are certain that you will be able to sell all of them as they are.

A community college has offered to buy 200 of these booklets and pay you $19.50 each (instead of $14 each) if you process further by adding a special cover with the college logo on it.

Your additional cost of adding the special college logo cover to 200 booklets would be $1,750.

This is a one-time offer only and would not grow into a future, larger repeat business, and there are no other relevant issues. Thus, your decision is whether to accept the community college offer and process furtheror not!

Price that community college has offered to pay for each booklet: $19.50

A) (2 pts) Is the original total cost of $1,800 relevant to your decision? (YES or NO) and why??

B) (6 pts) Should you accept the community college offer and process further? (YES or NO)

AND SHOW YOUR CALCULATIONS AND A CLEARLY IDENTIFIED RESULTING SINGLE TOTAL DOLLAR AMOUNT differential in net income (and clearly show how you reached your answer). (USE an easy-to-follow differential analysis approach)

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