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8 2 01). The European company for sports produced in one of its production lines basketball. The Director of Planning presented the income statement for
8 2 01). The European company for sports produced in one of its production lines basketball. The Director of Planning presented the income statement for the year 2000 as follows: Details The total amount Per unit Sales $4000000 $10 Cost Industrial to Sales 3200000 gross profit 800,000 Cost of Marketing & administration 300000 Net Operating Profit 500000 Fixed cost represents the amount of$ 1200000 as industrial costs, and $100000 as marketing and administrative costs. At the same time, a customer submits an order for the processing of (50,000) ball at $ 7.5, there is no additional marketing costs upon acceptance of this order and the company has sufficient production capacity To meet this order and that this order did not affect its competitive position. 0.75 1.25 Required: Do you recommend acceptance of this order explaining the amount of increase or decrease in the profits of the company
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