Question
A manager of Coastal Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 50,000 dozen
A manager of Coastal Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 50,000 dozen golf balls at a price of $12 per dozen. The variable cost to manufacture a dozen golf balls is $9 per dozen. The full cost is $14 per dozen. Coastal Sporting Goods has a normal selling price of $24 per dozen. Coastals plant has just enough excess capacity on the second shift to make the overseas order.
Question:
What are the considerations to think about/discuss in accepting or rejecting this order?
Would you accept or reject the order? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started