Suppose a customer offers you a huge contract for your product (from the first assignment). This customer will pay you 10% less than your normal charge, but will order 5,000 units of your product. Using CVP analysis and the costs that you established in Assignment One, should you take the offer or not? (This is a "special order" decision.) This requires you to think about the costs - will you lose money - along with other considerations - is this a customer who will bring enough business in the future to make it worth losing money now? Is it your favorite uncle and you can't say no and still be invited to the family reunion? what's the profit without the special order? Is it more or less?

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This is the information from assigment 1 that is required to develop question ( above A).

			ITEM	Cost per Unit	Classification
			Fabric	$0.80	Product
			Interfacing	$0.80	Product
			Hardware	$0.80	Product
			Sewing Machine	Monthly Cost	Period
			Thread	Monthly Cost	Period
			Pliers	One-time Cost	Product
			Workspace Rental	Monthly Cost	Period
			Sales Venue Rental	Monthly Cost	Period
Monthly Costs :
	Fabric and Interfacing: 60 hair tie per yard
	Hardware : 1 per hair tie
	Planing to make 500 hair tie in a month
	Fabric and Intefacing Cost :($0.80/1 hair tie )x500 hier tie
	Fabric and Interfacing Cost :=	$0.80	x500
				1
				:$400
	Hardware Cost : $0.20x500
		:$100.00
	Total Product Costs
	Total Product costs : Fabric and Interfacing Cost + Hardaware Cost
			:$400+100
			:$500
	Monthly Period Cost : Sewing Machine , Thread ,Pliers, Wrokspace Renat, Sales Venue Rental
Wok in Process (WIP) and Finished Goods
			Date	Account	Dr	Cr
				devid WIP	$500
				Raw Materials inventory		$400
				(fabric and Interfacing)
				Raw Materials inventory		$100
				Work in Process
			Date	Account	Dr	Cr
				finished goods inventory	$500
				Work in Process		$500
				finished goods
Cost of Goods Sold Upon Sale Of key Fobs
			Date	Account	Dr	Cr
				Cost Of Goods Sold	$500
				finished goods inventory		$500
				Cost Of Goods Sold