Business, 14.04.2020 17:53, magemenproduct

Gayla Ojeda is trying to decide which of two different kinds of candy to sell in her retail candy store. One type is a name-brand candy that will practically sell itself. The other candy is cheaper to purchase but does not carry an identifiable brand name. Ms Ojeda believes that she will have to incur significant advertising costs to sell this candy. Several cost items for the two types of candy are as follows:
(a) Brandless Candy
Cost per box $4.00
Sales commissions per box 1.00
Rent of display space 900.00
Advertising 3,000.00
(b) Name-Brand Candy
Cost per box $ 6.00
Sales commissions per box 1.00
Rent of display space 900.00
Advertising 2,000.00
Required:
1. Identify each cost as being relevant or irrelevant to Ms. Ojeda's decision and indicate whether it is fixed or variable relative to the number of boxes sold.

Answers: 3

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Gayla Ojeda is trying to decide which of two different kinds of candy to sell in her retail candy st...