Rolevant items Expected revenue Expected variable costs Expected nventory carrying cost Expected total costs Expected profits Cookies with Rashew and honey $850,000548,00032,000580,000$270,000 Plain cookies $725,000418,00022,000440,000$285,000 Difference $125,000(130,000)(10,000)(140,000)$(15,000) Dulcet Foods,Inc.,has the option to sell either of the variant.Which one is a better alternative?
Definitions: