Question
Assume that Okay expects to produce and sell 95,000 units during the current year. One of Okay's sales representatives has found a new customer that
Assume that Okay expects to produce and sell 95,000 units during the current year. One of Okay's sales representatives has found a new customer that is willing to buy 9,000 additional units for a price of $44 per unit. If they accept the customer's offer, it will decrease unit sales to regular customers by 5,000 units. Should they accept this special order? Show all work/calculations to justify your decision.
Assume that Okay expects to produce and sell 22,000 units during the current quarter. A supplier has offered to manufacture and deliver 22,000 units for a price of $28 per unit. Should Okay accept this offer? How much will profit's increase or decrease? Show all work/calculations to justify your decision.
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