Cottage Industries Ltd (see Example 9.1 on page 305) has spare capacity in that its basket makers
Question:
Cottage Industries Ltd (see Example 9.1 on page 305) has spare capacity in that its basket makers have some spare time. An overseas retail chain has offered the business an order for 300 baskets at a price of £13 each.
Without considering any wider issues, should the business accept the order?
(Assume that the business does not rent the machine.)
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