Waterways mass produces a special connector unit that it normally sells for $3.90. It sells approximately 35,000
Question:
An irrigation company has asked for a special order of 2,000 of the connectors. To meet this special order, Waterways would not need an additional shift, and the irrigation company is willing to pay $3.10 per unit.
What are the consequences of Waterways agreeing to provide the 15,000 units to the Canadian company? Would this be a wise "special order" to accept?
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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