Pete Pole has just discontinued its lowest line of high-quality clotheslines. In its inventory, Pete has 60000
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Pete Pole has just discontinued its lowest line of high-quality clotheslines. In its inventory, Pete has 60000 lines that cost \(\$ 40\) per line to manufacture. At the current selling price of \(\$ 80\), it may take as long as eight years to sell the lines. A foreign buyer has just offered the business \(\$ 2\) million for all the units.
Required:
Is the \(\$ 40\)-per-unit manufacturing cost relevant in deciding whether or not to accept the offer?
List the costs and revenues that you think would be relevant.
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Related Book For
Accounting Information For Business Decisions
ISBN: 9780170253703
2nd Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons
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