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2.Alder Company produced and sold 30,000 units of product and is operating at 80% of plant capacity. Unit information about its product is as follows:
2.Alder Company produced and sold 30,000 units of product and is operating at 80% of
plant capacity. Unit information about its product is as follows:
Sales Price $70
Variable manufacturing cost $45
Fixed manufacturing cost ($300,000 30,000) 10 55
Profit per unit $15
The company received a proposal from a foreign company to buy 6,000 units of Alder
Company's product for $50 per unit. This is a one-time only order and acceptance of this
proposal will not affect the company's regular sales.
Instructions: Should Alder accept the offer?
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