Question: A special order request for 20,000 widgets just showed up on your desk. The customer has asked for special engraving, at an additional cost

A special order request for 20,000 widgets just showed up on your

A special order request for 20,000 widgets just showed up on your desk. The customer has asked for special engraving, at an additional cost of $1 per widget. They are also asking for a 20% discount on your regular price of $10 (so they want to pay $8 per widget). If you have some idle production space, and this job would net $5,000 after all expenses, do you take the special order?

Step by Step Solution

★★★★★

3.42 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

SOLUTION To determine whether to accept the special order we need to calculate whether the additional revenue from the order and the incremental profit generated by the order will be sufficient to cov... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The pendulum consists of a 2-kg disk, and slender rods AB and DC which have a mass per unit length of 2 kg/m. Determine the length L of DC so that the center of mass is at the bearing O. What is the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

5 easy managerial questions In a make or buy decision, the costs involved in buying will include: a) The charge from the vendor, plus the depreciation of any equipment you were unable to sell when...

There is an image saying the birth of free market economics. There are two cavemen facing each other. the left one is holding a stick and thinks I wish I had a rock. the one on the right holds a rock...

easy managerial questions. i give thumbs up Inamke er bey decision, the costs involved in buying will include: al The charge from the vendor, plus the depreciation of any equipment you were unable to...

I'm looking to see if someone can help me with this homework. I have attached the documents that are needed. I'm not good with financial reports. Thanks the home depot annual report 2012 AnnuAl...

Part 1 - Excel Sheet Prepare Ratios Ratios for National Beverage Corp. concerning liquidity, solvency, profitability, DuPont, and stock performance as of April 30, 2016 and prior statement...

I am unsure how to start this and how to fill out excel. Please help, question below. Question: Part 1 - Excel Sheet Prepare Ratios Ratios for National Beverage Corp. concerning liquidity, solvency,...

The following time series shows the number of junk email messages that Ashar Nazir has received in each of the most recent seven months. 1 2 3 4 5 6 7 122 111 102 97 93 92 90 (a) Construct a time...

Write the negation of each of the following true statements. For parts (a) and (b) the universe consists of all integers; for parts (c) and (d) the universe comprises all real numbers. (a) For all...

Once an antibiotic is introduced to treat a bacterial infection, the number of bacteria decreases exponentially. For example, beginning with million bacteria, the amount present days from the time is...

9 Use your knowledge of carbonyl chemistry and reaction mechanisms to explain the following biological transformation. The C(-0)SCOA unit is a thioester (The OR unit of an ester is replaced by an SR...

x +1 Given a function f (x) = - -10. Determine the root of f(x) which falls 1. x-4x between -20

(sec 2x - 3 tan 2x)) dx

Below are 36 sorted ages of an acting award winner. Find P25. 16 18 23 24 26 27 28 28 33 34 34 35 38 39 42 46 48 48 48 49 51 51 53 55 56 58 59 62 62 63 67 67 70 71 71 77 P25 = (Type an integer or a...

Use the graph of f to estimate where f' is 0, positive, and negative. OA Zero: x1; positive: (0,ae) and (-00, -1); negative: (-1,1) Ay OB. Zero: x=0; positive: (0,00): negative: (- 0o.0) Q OC. Zero:...

The performance formula is performance = motivation ability resourcesperformance = effort ablity resourcesperformance = motivation ability resourcesperformance = motivation effort talent

The following is a copy of the auditor?s working paper for auditing additions and disposals relevant to the balance of property, plant, and equipment (PPE) for the client New Millennium...

The following information was taken from the accounting records for Aurora Manufacturing, Inc.: Required a. Calculate the following information and ratios for years 2, 3, 4, and 5: 1. Purchases. 2....

The following situations involve Herb Standard, staff accountant with the regional accounting firm of Cash & Green: 1. The bookkeeper of Ethical Manufacturing Company resigned two months ago and has...

Why is media selection a critical part of the marketing managers job?

Try to explain the nature of a corporate personality. Why is this significant for marketing communication?

How does marketing communication impact upon brand name?