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Akron Chemicals produces a chemical, PX44 which is used to retard fading in exterior house paint. In the past year, the company produced 200,000 gallons
Akron Chemicals produces a chemical, PX44 which is used to retard fading in exterior house paint. In the past year, the company produced 200,000 gallons at a total cost of Rs1,00,00,000 ( Rs 50 per gallon). The company is currently considering an order for 10,000 gallons from a paint company in Japan (to date, Akron has not sold the product in markets outside the country). Explain why the incremental cost associated with this order is likely to be less than Rs 5,00,000
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