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Lopez Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit.
Lopez Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Lopez is operating at 75% of its capacity of 10,000 units. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order.
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