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A firm, having a capacity of 15,000 units per year, produces 10,000 units, which are consumed in home market at OMR.25 per unit. The cost

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A firm, having a capacity of 15,000 units per year, produces 10,000 units, which are consumed in home market at OMR.25 per unit. The cost sheet per unit is as under: A foreign consumer is interested in the product and is willing to buy 5,000 units at a price of OMR. 18 per unit only. Do you advise the firm to accept the order? Justify your recommendation, with suitable reasoning

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