# 4 an idea suggested by garnaals marketing manager is

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[/4]An idea suggested byGarnaal’smarketing manager is to import aquaculture shrimp for somedishes. He feels that the El Diablo Spicy Cajun Shrimp appetizer might a suitable dish. “It isso hot and spicy”, he says, “customers are unlikely to notice the difference in shrimp taste!”You discover the following facts regarding the El Diablo appetizer and the shrimp used toproduce it:Wild shrimp cost \$13 per kg, while aquaculture shrimp cost \$14 per kg on the first 250,000kg and \$11 per kg thereafter.Other variable costs to create the El Diablo appetizer are \$3 per appetizer.Fixed costs to create the El Diablo appetizer are \$5 per appetizer.There is 0.25 kg of shrimp in the El Diablo appetizer.Question 3IfGarnaalsells 1.2 million El Diablo appetizers per year, which of the follow statements iscorrect? Present your calculations.
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II: Short questionsUse this data for the next two questions. Smellie Corp. makes Z-scent according to a traditionalrecipe, which normally sells at €9 (Euros) per ounce. This product is seasonal. During the highproduct demand season, January through the end of July, production volume is at full capacity of10,000 ounces per month. From August until the end of December, low demand season, productionvolume drops to 6,000 ounces per month. Variable costs of production are €2 in direct materialsper ounce and € 1 per ounce of direct labor. Fixed costs are €18,000 per month.Question 1In November, Procurie Inc. offers to purchase 1,500 ounces for €6,000. If Smellie accepts theorder, she must design a special label for Procurie at a cost of €500. Each label will cost 25 centsper ounce to make and apply. Should Smellie accept this one-off special order? Indicate youranswer and make sure to show your calculations. Smellie should:
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