+33 Other factors, which strongly justify acceptance of an order with lower contribution at the time adverse trade situations, are to: (a) hold together the skilled labour force; (b) keep the plant and machinery in operation and the workers busy: (c) utilize materials already received; (d) avoid costs involved in the closing and re-opening of the plant; (e) maintain the sales of complementary products at a satisfactory level; and (1) maintain position in established markets to avoid additional sales promotion expenses in reestablishing the markets. Selling below full cost prices, even under a normal situation, may be adopted in order to: (a) introduce a new product, (b) execute an order in a special market segment (say, defense supply) which is immune from other market segments; (c) expand the export market; and (d) dispose of a product which deteriorates fast. Example 6.14: The Everest Snow company manufactures and sells direct to consumers 10,000 jars of 'Everest Snow' per month at Rs. 1.25 per jar. The company's normal production capacity is 20,000 jars of snow per month. An analysis of cost for 10,000 jars is given below: Direct material Rs. 1000 Direct labour 2475 Power 140 Miscellaneous supplies 430 Jars 600 Fixed expenses of manufacturing, selling and administration 7955 Total Rs. 12600 The company has received an offer for the export, under a different brand name for 1, 20,000 jars of snow at 10,000 jars per month at 75 paise a jar. Write a short report on the advisability or otherwise of accepting the offer