A company currently sells 8,220 basketballs (units) per year for $25 each. The company can make...
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A company currently sells 8,220 basketballs (units) per year for $25 each. The company can make up to 10,220 basketballs per year. Each basketball made includes $15 in variable costs and $6.50 of fixed costs. A new customer offers to buy 655 basketballs for $20 each. For this special offer, the incremental fixed costs are $3.80 per ball. No other costs will change if the offer is accepted. a) For this special offer, calculate the income. b) Should the special offer be accepted or rejected? 09:59 (a) Special offer analysis ed Contribution margin Income (b) The company should Per Unit $ 0.00 Total A company currently sells 8,220 basketballs (units) per year for $25 each. The company can make up to 10,220 basketballs per year. Each basketball made includes $15 in variable costs and $6.50 of fixed costs. A new customer offers to buy 655 basketballs for $20 each. For this special offer, the incremental fixed costs are $3.80 per ball. No other costs will change if the offer is accepted. a) For this special offer, calculate the income. b) Should the special offer be accepted or rejected? 09:59 (a) Special offer analysis ed Contribution margin Income (b) The company should Per Unit $ 0.00 Total
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