MFS Sdn Bhd (MFSSB) manufactures sports attire. The capacity of the production is 5,000 units each month
Question:
MFS Sdn Bhd (MFSSB) manufactures sports attire. The capacity of the production is 5,000 units each month Currently, the normal production is at 75%. The price for one suit of sport attire is RM175. Below are the costs incurred for the 75% current activity level:
Last week MFSSB receive an order from a new customer for 1.250 units of sports attire with the price of RM100 per unit. For this order, no variable marketing costs will be incurred
REQUIRED:
(a) Determine whether MFSSB should accept the special order. Show all workings.
(b) Determine whether MESSB should accept the special order's price of RM100. Show all workings.
(c) Discuss TWO (2) qualitative factors that MFSSB should include in the analysis of the special order.
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins