=+3 As in requirement 1, assume that monthly capacity is 10000 medals. Award Plus is concerned that,

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=+3 As in requirement 1, assume that monthly capacity is 10000 medals. Award Plus is concerned that, if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled.

Chapter 8: Decision making and relevant information 329 M08_HORN3377_02_LT_C08.indd 329 2/09/13 3:42 PM They would argue that Award Plus’s capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Award Plus accept the special order under these conditions? Show your calculations.

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