a) Describe the quantitative factors that must be taken into account in assessing a request by a

Question:

a) Describe the quantitative factors that must be taken into account in assessing a request by a customer for a special order when there is no spare production capacity.
b) The Icecream Parlor has one product line that is recorded as unprofitable. The of this product is $20 000 and, after deducting fixed costs of $28 000, a loss of $8000 is recorded. Should the Icecream Parlor discontinue this product? Explain and discuss.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...