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Alexa Inc is trying to determine whether or not to accept an order for 200 products at a price of $45 each. Alex makes birdhouses
- Alexa Inc is trying to determine whether or not to accept an order for 200 products at a price of $45 each. Alex makes birdhouses that usually sell for $55 each for a birdhouse, the total fixed costs are fixed costs are $10,000 and the company currently produces well below its maximum capacity of 1,000 birdhouses. The variable cost is 30 but not changing, but will result in additional fixed costs of $1000 because it may be needed. Should they accept the special order, or not?
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