Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $21,800 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal:
The manufacturing overhead consists of $2,200 of variable costs with the balance being allocated to fixed costs.
A.Calculate the differential cost of Acme?
$fill in the blank 1
B.Should Almond Treats make or buy the almond cereal?
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