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Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs $5.00 Fixed manufacturing costs $1.50 Variable
Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs $5.00 Fixed manufacturing costs $1.50 Variable marketing costs $1.00 Fixed marketing costs $0.50 Capacity cannot be added in the short run and the firm currently sells the product for $10 per unit. Consider each of these scenarios independent of each other. a) The company is currently producing 30,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. The customer is willing to pay $5.50 per unit. Since the potential customer approached the firm, there will be no variable marketing costs incurred. Why or why not should the company accept the special order
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