Cupid Cupcakes Company produces 1,000 boxes of specialty cup…
Cupid Cupcakes Company produces 1,000 boxes of specialty cupcakes. The cost of box of cupcakes is given below.Direct materials $8Direct labor 12Variable overhead 9Fixed overhead 14An outside supplier has offered to produce the cupcakes for $20 per box. Cupid can reduce the fixed overhead by 20% if it outsources the production of the pretzels. How many total dollars will Cupid Company save if it accepts the offer? State answer in numbers, no commas, no decimals, no dollar signs.