Blowing Sand Company has just received a one-time offer to purchase 10,600 units of its Gusty...
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Blowing Sand Company has just received a one-time offer to purchase 10,600 units of its Gusty model for a price of $36 each. The Gusty model normally sells for $46 and costs $42 to produce ($31 in variable costs and $11 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. Required: 1. Should Blowing Sand accept the special order? Will Blowing Sand accept the order 2. Calculate the increase or decrease in short-term profit from accepting the special order. Profit by Blowing Sand Company has just received a one-time offer to purchase 10,600 units of its Gusty model for a price of $36 each. The Gusty model normally sells for $46 and costs $42 to produce ($31 in variable costs and $11 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. Required: 1. Should Blowing Sand accept the special order? Will Blowing Sand accept the order 2. Calculate the increase or decrease in short-term profit from accepting the special order. Profit by
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