CASE 6 Accept a Special Offer or Reject it What is your choice Why Differential Analysis Reject Special Offer (Alternative 1) or Accept Special Offer (Alternative 2) March 10, 2018 Reject Special Offer (Alternative 1) Accept Special Offer (Alternative 2) Differential Effects (Alternative 2) Revenues Costs Variable Manufacturing Costs Fixed Manufacturing Costs Profits (or Losses) Assume that B Ball Inc manufactures basketballs as follows On March 10 of the current year, B Ball Inc received an offer from an exporter for 5,000 basketballs at $18 each Production can be spread over three months without interfering with normal production or incurring overtime costs Pricing policies in the domestic market will not be affected

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Question: CASE 6: Accept a Special Offer or Reject it? What is your choice? Why? Differential Analysis Reject Special Offer (Alternative 1) or Accept Special Offer

CASE 6: Accept a Special Offer or Reject it? What is

CASE 6: Accept a Special Offer or Reject it? What is your choice? Why?

Differential Analysis Reject Special Offer (Alternative 1) or Accept Special Offer (Alternative 2) March 10, 2018
	Reject Special Offer (Alternative 1)	Accept Special Offer (Alternative 2)	Differential Effects (Alternative 2)
Revenues
Costs Variable Manufacturing Costs Fixed Manufacturing Costs
Profits (or Losses)

Assume that B-Ball Inc. manufactures basketballs as follows: On March 10 of the current year, B-Ball Inc. received an offer from an exporter for 5,000 basketballs at $18 each. Production can be spread over three months without interfering with normal production or incurring overtime costs. Pricing policies in the domestic market will not be affected

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