The Sweet Treats Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak demand during the “candy season” from Halloween through Valentine's Day. During the other six months of the year, the manufacturing facility operates at 75% of capacity. The Sweet Treats Company provides the following data for the year:
The Sweet Treats Company receives an offer to produce 13,000 cases of candy for a special event. This is a one-time opportunity' during a period when the company has excess capacity. What is the minimum sales price The Sweet Treats Company should accept for the order? Explain why.
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