Falcon Co Produces a single product. Its normal selling price is $30 per unit. The variable costs are $19 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $20.00 per unit. Falcon Co has the capacity to handle the
special order and, for this order, a variable selling cost of $1 per unit would be eliminated. Should the special order be accepted?
A) Cannot determine from the data given
B) Yes
C) No
D) There would be no difference in accepting or rejecting the special order
B
You might also like to view...
Assets acquired by donation will have zero value for financial reporting purposes
Indicate whether the statement is true or false
What is an operating system? What does it do? What are operating system control objectives?
All of the following are examples of nonpanel recruited sampling methods used in Internet research except ________
A) use of e-mail lists that have been rented from suppliers B) offline techniques such as short telephone screening interviews to recruit Internet samples C) a store may hand its customers a flier directing them to a specific-password protected site D) All of the above are nonpanel recruited sampling methods.
One element of a just-in-time operating environment is pull-through production, which means that a firm starts production of a product only after an order is received
Indicate whether the statement is true or false