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Blowing Sand Company has just received a one-time offer to purchase 8,400 units of its Gusty model for a price of $25 each. The Gusty
Blowing Sand Company has just received a one-time offer to purchase 8,400 units of its Gusty model for a price of $25 each. The Gusty model normally sells for $33 and costs $29 to produce ( $19 in variable costs and $10 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. 1. Should Blowing Sand accept the special order? Yes No 2. Calculate the increase or decrease in short-term profit from accepting the special order
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