Joyce hardmann is trying to decide which two different

Reference no: EM13597976

Joyce Hardmann is trying to decide which 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. Hardmann believes that she will have to incur significant advertising costs to sell the candy. Several cost items for the two types of candy are as follows.

Brandless Candy
cost per box $4.00
sales commissions per box 0.50
rent of display space 1,500.00
advertising 3,000.00

Name-Brand Candy
cost per box $6.00
sales commissions per box 1.00
rent of display space 1,500.00
advertising 2,000.00

Required

Identify each cost as being relevant or irrelevant to Ms. Hardmann's decision and indicate whether it is fixed or variable relative to the number of boxes sold.

Reference no: EM13597976

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