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Matheson Electronics has been approached by an overseas company regarding a one-time special order. The order would consist of 2,000 units for a reduced price
- Matheson Electronics has been approached by an overseas company regarding a one-time special order. The order would consist of 2,000 units for a reduced price (10% lower than the normal sales price). It will cost Matheson a one-time fee for packaging design equal to 3% of the cost of the equipment. These packaging changes are estimated to increase variable costs per unit by 5% a unit for labelling. Remember Use Mathesons ACTUAL operating results calculated in 8 in your decision.
- Assuming this special order would not cause any other impact to other production or costs, calculate the impact to the companys overall Net Operating Income.
- Should Matheson Electronics accept the special order? (10 to 30 words) Yes or No?
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