A company$’$s normal capacity is $100,000$ units and at this level variable cost per unit is Rs$.75$ and fixed cost per unit is Rs$.30.$ The normal sales price is Rs$.165$ per unit. A special order is received for $5,000$ units at selling price of Rs$.135$ per unit. In order to fulfil the order the company will have to forego $3,000$ units of regular sales. Should the company accept the order?  

Answer rating: 100% (QA)

To determine whether the company should accept the special order lets calculate the relevant costs a... View the full answer