A manufacturer has planned his level of operations at 50% of his plant capacity of 30,000 units.
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Question:
A manufacturer has planned his level of operations at 50% of his plant capacity of 30,000 units. His expenses are estimated as follows, at 50% of the plant capacity utilization:
The expected selling price in the domestic market is Rs. 2 per unit. Recently, the manufacturer has received a trade enquiry from an overseas organization that is interested in purchasing 6,000 units at a price of Rs. 1.45 per unit.
As a professional Management Accountant what would be your suggestion regarding acceptance or rejection of the offer? Support your suggestion with suitable quantitative information.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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