Question: Suppose a customer offers you a huge contract for your product ( from the first assignment ) . This customer will pay you 1 0
Suppose a customer offers you a huge contract for your product from the first assignment This customer will pay you less than your normal charge, but will order units of your product. Using CVP analysis and the costs that you established in Assignment One, should you take the offer or not? This is a special order decision.
This requires you to think about the costs will you lose money along with other considerations is this a customer who will bring enough business in the future to make it worth losing money now? Is it your favorite uncle and you can't say no and still be invited to the family reunion?
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