Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?
A. The impact on the normal selling price of $6
B. Will an additional shift be needed to complete the order?
C. Are future orders from Coyote likely?
D. Does the special price comply with the Robinson-Patman Act?
E. All of the above
E. All of the above
All of the factors mentioned are relevant. Answers to a), b) and d) could have a negative effect on the decision to accept the offer. Future orders from Coyote could be viewed favorably, provided that they do not utilize factory resources devoted to the regular, more profitable, customers.
You might also like to view...
To effectively sell merchandise that typically involves impulse purchases, what is the most critical element in the retail mix?
A. Prominent displays B. Store location C. Price D. Customer service E. Advertising
Which of the following is a component of the evidence square?
a. Rationalization b. Perceived pressure c. Personal observation d. Perceived opportunity
Which of the following messages should be written inductively?
a. Resignation b. Follow up c. Thank you d. Job acceptance
In the case of culture, ______ means that most members intuitively understand the basic values, norms, or logics that underlie what is acceptable.
A. shared B. learned C. organized D. systematic