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A company with idle capacity has been contacted by a new customer to supply 10,000 units of its products for a special batch order its costs are as follows.
The company's normal soling price is SI00 per unit but the customer is wiling to pay only S70 pet unit Should the company accept the special order''
- A . Yes, because the special order will increase operating profit by S100 000
B. Yes, because the special order will increase operating profit by S250 000
C. No, because the special order will reduce operating profit by S50 000
D. No, because the special order will reduce operating profit by $250 000
Suggested Answer: C
Posted : 02/02/2023 8:35 pm