A major health food chain has approached Fruity plc to ask if the company would be willing to provide 100,000 drinks in the forthcoming year at a price of PKR 25 per drink. The company will only accept 100,000 drinks.

Assume that the company has finalized production and sales plans for the year at a price of PKR 100 and a volume of 360,000 drinks.

 

Required: 

Assess whether Fruity Plc should accept this special order and calculate the company’s profit if the order is accepted.