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Dulcet Foods,Inc

Question 143

Essay

 Rolevant items  Cookies with  Rashew and  honey  Plain cookies  Difference  Expected  revenue $850,000$725,000$125,000 Expected  variable costs 548,000418,000(130,000) Expected  nventory  carrying cost 32,00022,000(10,000) Expected total  costs 580,000440,000(140,000) Expected  profits $270,000$285,000$(15,000)\begin{array}{|l|l|l|l|} \hline\text { Rolevant items } & \begin{array}{l}\text { Cookies with } \\\text { Rashew and } \\\text { honey }\end{array} & \text { Plain cookies } &\text { Difference } \\\hline\\\hline \begin{array}{l}\text { Expected } \\\text { revenue }\end{array} & \$ 850,000 & \$ 725,000 & \$ 125,000 \\\hline \begin{array}{l}\text { Expected } \\\text { variable costs }\end{array} & 548,000 & 418,000 & (130,000) \\\hline \begin{array}{l}\text { Expected } \\\text { nventory } \\\text { carrying cost }\end{array} & 32,000 & 22,000 & (10,000) \\\hline \begin{array}{l}\text { Expected total } \\\text { costs }\end{array} & 580,000 &440,000&(140,000)\\\hline \begin{array}{l}\text { Expected } \\\text { profits }\end{array} & \$ 270,000 & \$ 285,000 & \$(15,000)\\\hline\end{array} Dulcet Foods,Inc.,has the option to sell either of the variant.Which one is a better alternative?

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The expected revenue is more by $125,000...

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