Question: A customer has asked you for a special order. Below is your current costs at a volume of 1 0 , 0 0 0 units.
A customer has asked you for a special order. Below is your current costs at a volume of
units.
The customer will only pay a maximum of $ per unit and wishes to acquire units. We will
also incur a one time fixed cost of $ to buy a unique tool to process this order. Assume we
have sufficient capacity in our operations that we don't forgo any current sales.
REQUIRED:
Determine the net financial impact if we accept this special order and state whether
or not we should accept it
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