Question: Question:1 A machine shop in a factory is working to its full capacity and earning a contribution of Rs. 50 per hour. The management receives

Question:1

A machine shop in a factory is working to its full capacity and earning a contribution of Rs. 50 per hour. The management receives a high priority order which it wants to execute immediately. Material will be supplied by the customer and the order will take a minimum of ten hours. Wages payable will be Rs. 15 per hour and Variable overheads will be 150% of labour cost. If the customer is prepared to pay Rs.800 for the order, should the order be accepted?

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