=+2 Now suppose Kingston Ltd is currently producing and selling 50000 bats. If Kingston Ltd accepts Woden
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=+2 Now suppose Kingston Ltd is currently producing and selling 50000 bats. If Kingston Ltd accepts Woden Ltd’s offer it will have to sell 10000 fewer bats to its regular customers.
a On financial considerations alone, should Kingston Ltd accept this one-time-only special order? Show your calculations.
b On financial considerations alone, at what price would Kingston Ltd be indifferent between accepting the special order and continuing to sell to its regular customers at $32 per bat?
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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