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CONCEPT CHECK Tim's Tools normally sells 10,000 sets of its specialized tools to craftsmen for $20.00 per set. The costs associated with each set include
CONCEPT CHECK Tim's Tools normally sells 10,000 sets of its specialized tools to craftsmen for $20.00 per set. The costs associated with each set include variable costs of $10.00/set (which includes $2.00 of selling costs) and fixed costs are currently $30,000. A distributor outside of Tim's Tools sales region has contacted the owner (Tim) and would like to buy 200 sets of tools for $15.00 each. Tim's Tools has idle capacity but will have to rent additional equipment for $2,000 to meet the additional demand. When Tim is considering whether or not to accept the special order, which of the following are relevant to making the decision? oorbo of a. The $10.00 per set variable cost b. The total fixed costs of $32,000 c. The additional fixed costs of $2,000 d. a and b above e. a and c above Istneme
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