paraphrase this recommondation

Contribution Margin from Denmark Order= CM per unit * Total units CM from the order= 20.10 x 400 = 8040 An additional expense from the Denmark order is the Shipping expense which is a fixed cost and is 400. Increased income from Denmark order = 8040 800 = 7240 3. Analysis | analyzed your sales and costs, finding that Jewel the Nile has a break-even point of 200 units, making revenue of $21,800. Now, looking at a special order from Denmark, | focused on the extra costs and benefits. The order brings in $89 per unit in revenue, with additional costs like shipping. | left out fixed costs that your company would have to pay regardless. After comparing the numbers, it's clear that accepting the special order would increase your operating income by $18.10 per unit and a total of $7,240. So, it seems like taking the order is a profitable move for your company. While the quantitative analysis suggests that Jewel of the Nile should accept the project, there are qualitative factors to consider. No salaries have been paid so far, and the partners and workers may need to work extra hours for this special order shipped abroad. Additional tasks, such as ensuring accurate order details for 400 pieces and choosing a reliable shipping company, may incur costs. If the combined cost and equivalent salary exceed $7,240, reconsidering the order is advisable. However, the potential for a long-term partnership and increased sales in Denmark should also be weighed, considering the current break-even situation. 4. Recommendation Based on my analysis, | suggest Jewel of the Nile should go ahead and accept the order. While there might be some additional costs, like extra salary and miscellaneous expenses, it's unlikely to go beyond $7,240 by a considerable margin. Even if there's a minor increase, the relation would make up the losses maybe and can get more orders in future which could be more profitable. This study source was downloaded by 100000879787216 from CourseHero.com on 11-28-2024 01:32:51 GMT -06:00 https://www.coursehero.com/file/223191545/Financial-Analysis-Jewel-of-the-Nile-Case-Study-Breakdown/