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...


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:





















Direct material$13,000
Direct labor5,100
Manufacturing overhead7,100
Total$25,200

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?


Make or buy?


Jun 11, 2022
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