1. Assume that Rand expects to produce and sell 95,000 units during the year. One of Rands sales representatives has found a new customer that is willing to buy 10,000 additional units for a price of $50 per unit. If Rand accepts the customers offer, it will decrease unit sales to regular customers by 5,000 units. Should Rand accept this special order? Show all work/calculations
2. Assume that Rand expects to produce and sell 20,000 units during the current quarter. A supplier has offered to manufacture and deliver 20,000 units to Rand for a price of $42 per unit. Should Rand accept this offer? How much will profits increase or decrease? Show all work/calculations
3. If Rand accepts the customers offer, it will decrease unit sales to regular customers by 5,000 units. Should Rand accept this special order? Show all work/calculations
4. Assume that Rand expects to produce and sell 20,000 units during the current quarter. A supplier has offered to manufacture and deliver 20,000 units to Rand for a price of $42 per unit. Should Rand accept this offer? How much will profits increase or decrease? Show all work/calculations