writing assignment:

$.1-$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? :)

This assignment should be no more than a page, write your conclusion and show how you reached it$.$

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Using the following information develop the question above $(1)$

Think about a product you would like to manufacture. It doesn$$t have to be real, it can be anything you want. Then, list the costs involved in making that product and classify them as product or period costs.

Make up some numbers for materials and labor and transfer costs to Work In Process, Finished Goods and then to Cost of Goods Sold using the same format as the examples in your book.