Question
Given the following data for Tan Company Sales (in units) 60,000 Selling price per unit 28 Manufacturing costs per unit: Materials 5 Direct labor 4
Given the following data for Tan Company
Sales (in units) 60,000
Selling price per unit 28
Manufacturing costs per unit:
Materials 5
Direct labor 4
Overhead
Variable 4
Fixed 10
Total 23
Gross margin 5
Selling and admin. Expenses per unit 2
Operating income 3
A Company in a foregin market offer to buy and the offer specifies the following data
Units to be sold 10,000
Price per unit 13.10
What is the logical decision about this special offer
-
Do not reject the special offer
-
Reject the special offer
-
Indifferent to reaction, not the special offer
-
Always accept the offer
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