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Fairswing Corp. manufactures golf-club bags that sell for $230 per bag. Each month, they could manufacture 9,000 golf bags, although they are currently producing 8,550
Fairswing Corp. manufactures golf-club bags that sell for $230 per bag. Each month, they could manufacture 9,000 golf bags, although they are currently producing 8,550 bags. Per-unit production costs are as follows: Recently management at Fairswing Corp. was approached by a major company requesting to purchase 400 golf bags for the reduced price of $180 as a one-time only special order. Since the potential customer has approached Fairswing Corp., there will be no variable selling costs associated with the order. (A) Should Fairswing Corp. accept the one-time special order? By how much would income increase or decrease by accepting the order? (B) Before accepting or rejecting the one-time special order, what qualitative factors should the company consider
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