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Given the following: Sunbelt produces 100,000 automatic blenders each month. (They run at 80% capacity.) VC = $8.00 per unit FC = $400,000 ($4 per
Given the following: Sunbelt produces 100,000 automatic blenders each month. (They run at 80% capacity.) VC = $8.00 per unit FC = $400,000 ($4 per unit @ current level) Sales price = $20 per unit. An offer is made to purchase 2,000 blenders at $11.00 per blender. Should you do it? Note: Two points should be emphasized: 1. 2. it is assumed that sales of the product in other markets would not be affected by this order. if Sunbelt is operating at full capacity, it is likely that the special order would be rejected
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