Dulcet Foods,Inc

question 29

Essay

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

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Definitions:

Carolina

Originally a British colony in North America, later split into North Carolina and South Carolina during colonial times.

Hierarchical

Pertaining to a system that ranks people or things above one another in a series of levels or orders.

Linchpin

A critical element, person, or thing that holds something together or is essential to its stability and operation.

Atlantic Trading System

The network of trade routes connecting Europe, Africa, and the Americas from the 16th to the 19th century, facilitating the exchange of goods, people (including slaves), and culture.