#6) (4 Marks) You've received an unsolicited request to produce 10,000 units of your product for a new potential customer. The customer is trying to get a good deal' and doesn't want to pay your listed sales price shown on your business website. Using the information below, determine whether you should accept or reject this proposal: Sales Price information Our Regular Sales Price from Our Website Sales Price from the Special Order Cost Information Direct Mat rials Direct Labour Mfg O/H Total Mfg Costs Additional Information $25 per unit $20 per unit $15 per unit $60 per unit $85 $60 1. The Mfg O/H costs consists of all the indirect mfg costs and is based on our current level of manufacturing. Some costs incorporated into this number would remain unchanged if the order is accepted. Management estimates that only $11/unit of Mfg O/H is relevant for this analysis. 2. If management accepts this special order, they predict that their existing customer base would expect a partial refund of their money because they paid such a high price by comparison. To maintain good relationships with your current customers, management estimates they'd issue $25,000 worth of refunds to these existing customers if the special order is accepted. 3. There is sufficient idle capacity at the manufacturing plant that no existing orders would need to be cancelled or postponed.

\#6) (4 Marks) You've recelved an unsolicited request to produce 10,000 units of your product for a new potential customer. The customer is trying to 'get a good deal' and doesn't want to pay your listed sales price shown on your business website. Using the information below, determine whether you should accept or reject this proposal