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Florida Enterprises produces high quality blankets sold to hotels and resorts. Blankets must be well made because of frequent washings. Currently, Florida sells 1 0
Florida Enterprises produces high quality blankets sold to hotels and resorts. Blankets must be well made because of frequent washings. Currently, Florida sells blankets at $ each with the capacity to produce blankets. Florida is considering a special order from a hotel chain in Mexico for blankets at a price of $ Currently, Florida has the following costs:
Unit Costs $
Product Level Costs $
Facility Costs $
If Florida accepts the special order, it will incur an additional $ per blanket in foreign currency transaction costs. No other product or facility costs will change.
Required:
Determine the impact of the special order on Florida. Prepare your analysis in good form.
What other factors should Florida consider in taking the special order?
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