Ariel Cupcakes make cupcakes for special occasions. They charge $5 per cupcake. They've received a request for a special order for 215 cupcakes at a price of $6 each. The costs to produce a single cupcake are: Direct materials of $1.32 Direct labour of $0.79 Packaging of $1 Fixed costs of $3,559 for factory rent and equipment What is the impact on Ariel Cupcakes' profit of accepting the special order? Please answer to 2 decimal places. If accepting the order will generate a loss, be sure to add a minus/negative before your answer.

To calculate the impact on Ariel Cupcakes' profit of accepting the special order, we need to follow these steps:

1. Calculate the total revenue from the special order: The price per cupcake for the special order is $6 and the order is for 215 cupcakes. So, the total revenue is$6 * 215 = $1,290.

2. Calculate the total variable cost of the special order: The variable cost per cupcake is the sum of the costs of direct materials, direct labour, and packaging, which is $1.32 +$0.79 + $1 =$3.11. For 215 cupcakes, the total variable cost is $3.11 * 215 =$668.65.

3. Calculate the total cost of the special order: The total cost is the sum of the total variable cost and the fixed costs. So, the total cost is $668.65 +$3,559 = $4,227.65.

4. Calculate the impact on profit: The impact on profit is the total revenue minus the total cost. So, the impact on profit is $1,290 -$4,227.65 = -$2,937.65.

So, accepting the special order would result in a loss of $2,937.65.

To calculate the impact on Ariel Cupcakes' profit of accepting the special order, we need to follow these steps:

1. Calculate the total revenue from the special order: The price per cupcake for the special order is $6 and the order is for 215 cupcakes. So, the total revenue is$6 * 215 = $1,290.

2. Calculate the total variable cost of the special order: The variable cost per cupcake (direct materials, direct labour, and packaging) is $1.32 +$0.79 + $1 =$3.11. For 215 cupcakes, the total variable cost is $3.11 * 215 =$668.65.

3. Calculate the total cost of the special order: The total cost is the sum of the variable cost and the fixed costs. So, the total cost is $668.65 (variable cost) +$3,559 (fixed costs) = $4,227.65.

4. Calculate the impact on profit: The impact on profit is the total revenue minus the total cost. So, the impact on profit is $1,290 (revenue) -$4,227.65 (total cost) = -$2,937.65.

So, accepting the special order would result in a loss of $2,937.65 for Ariel Cupcakes.