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Assume you are a sales representative for Gigi Manis Sdn. Bhd. One of your customers is interested in buying some candy that will be given

Assume you are a sales representative for Gigi Manis Sdn. Bhd. One of your customers is interested in buying some candy that will be given to members of the Rotary Club. The club members will be marching in a community parade and will give the candy to children who are watching the parade. The customer asks you to give a 30% discount on the normal selling price of the candy to be given to the club. You know that the contribution margin of the candy, based on the regular selling price, is 40%. You are worried that if you give this customer the 30% discount, other customers will demand the same discount if they found out about it. At the same time, your production will be at full capacity if you accept the order from the Rotary Club customer. Your factory has never been at full capacity and this is an opportunity to increase your companys revenue.

Using the case study technique, decide whether you should give your customer that 30% discount. ( Total / Jumlah: 20 )

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