(Answered) Chariot a dallas based hotel chain makes an offer to

Management Studies

Chariot, a Dallas based hotel chain, makes an offer to Silvia Bakery for production of an additional 100 cakes per month. Chariot agrees to pay $16 per cake. Considering current production level and $3 per cake production cost, should Silvia Bakery accept or reject the offer? (Hint : Consider investing in additional capacity)

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