Question: Gooch Catering Company has received an offer from a very
Gooch Catering Company has received an offer from a very important client to work a large party next month. The client has requested service for 1,000 people at $ 120 per person. Gooch normally charges $ 185 per person for catering services. Assuming that facility costs will not change if the order is taken and that unit- variable costs are $ 110 per person, should the offer be accepted? Why or why not?
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