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1 - ( just this question to develop please A - - Suppose a customer offers you a huge contract for your product ( from

1-(just this question to develop please
A--Suppose a customer offers you a huge contract for your product (from the first assignment). This customer will pay you 10% less than your normal charge, but will order 5,000 units of your product. Using CVP analysis and the costs that you established in Assignment One, should you take the offer or not? (This is a special order decision.)
This requires you to think about the costs - will you lose money - along with other considerations - is this a customer who will bring enough business in the future to make it worth losing money now? Is it your favorite uncle and you can't say no and still be invited to the family reunion? :)
This assignment should be no more than a page, write your conclusion and show how you reached it.
Below I leave those tables with numbers that will be used as a reference to develop the quetion 1.
the next step is only for reference to question 1, which must be developed.
ITEM Cost per Unit Classification
Fabric $0.80 Product
Interfacing $0.80 Product
Hardware $0.80 Product
Sewing Machine Monthly Cost Period
Thread Monthly Cost Period
Pliers One-time Cost Product
Workspace Rental Monthly Cost Period
Sales Venue Rental Monthly Cost Period
Monthly Costs :
Fabric and Interfacing: 60 hair tie per yard
Hardware : 1 per hair tie
Planing to make 500 hair tie in a month
Fabric and Intefacing Cost :($0.80/1 hair tie )x500 hier tie
Fabric and Interfacing Cost := $0.80 x500
1
:$400
Hardware Cost : $0.20x500
:$100.00
Total Product Costs
Total Product costs : Fabric and Interfacing Cost + Hardaware Cost
:$400+100
:$500
Monthly Period Cost : Sewing Machine , Thread ,Pliers, Wrokspace Renat, Sales Venue Rental
Wok in Process (WIP) and Finished Goods
Date Account Dr Cr
devid WIP $500
Raw Materials inventory $400
(fabric and Interfacing)
Raw Materials inventory $100
Work in Process
Date Account Dr Cr
finished goods inventory $500
Work in Process $500
finished goods
Cost of Goods Sold Upon Sale Of key Fobs
Date Account Dr Cr
Cost Of Goods Sold $500
finished goods inventory $500
Cost Of Goods Sold
Monthly Period Costs:
Debit respective expense accounts (e.g., Sewing Machine Expense, Thread Expense, Rental Expense) for their monthly costs.
Explanation:
Period Costs: Costs associated with running the business that are not tied directly to the production of goods. Monthly costs like sewing machine usage, thread, and workspace rentals fall into this category.
Upon selling the hair tie, the costs are transferred from Finished Goods to COGS.
This process ensures proper accounting for the costs associated with manufacturing a product and the subsequent
********(ACCOUNTING QUETION)

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