Question: Accept an Order at a Special Price - Example (1 of 3) - Customer offers to buy a special order of 2,000 blenders at $11

Accept an Order at a Special Price - Example (1 of

Accept an Order at a Special Price - Example (1 of 3) - Customer offers to buy a special order of 2,000 blenders at $11 per unit from Sunbelt. No effect on normal sales; sufficient plant capacity Operating at 80% capacity =100,000 units Current fixed manufacturing costs =$400,000 or $4 per unit - Variable manufacturing cost =$8 per unit - Normal selling prince =$20 per unit - Based strictly on total cost of $12 per unit ($8+$4), reject offer as cost exceeds selling price of $11

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