Nike has just asked Aston Industries to supply 400,000 balls at a special-order price of $2.1 per

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Nike has just asked Aston Industries to supply 400,000 balls at a special-order price of $2.1 per ball. Nike wants Aston Industries to package the balls under the Nike label (Aston will imprint the Nike logo on each ball and can). As a result, Aston Industries will have to spend $30,000 to change the packaging machinery. Assuming the original volume and costs, should Aston Industries accept this special order?

Yes or no?

Posted Date: Dec 08, 2021 09:11 PM

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Nike has just asked Aston Industries to supply 400,000 balls at a special-order price of $2.1 per

Question:

Expert Answer:

Company should accept the order only if the variable cost is 2025 per ball or below that and there i... View the full answer

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