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Miller Parts has the capacity to produce 1 0 , 0 0 0 parts a month, and currently makes and sells 9 , 0 0
Miller Parts has the capacity to produce parts a month, and currently makes and sells parts a month. Parts normally sell for $ each, and cost an average of $ to make, including fixed costs. The monthly fixed costs are $ Centric Service has offered to buy parts at $ each.
Based on this information alone, should the offer be accepted? Multiple choice options are given below. Your decision should be explained in a paper format with typed calculations showing how you arrived at your answer. Please state why you think this offer should be or should not be accepted. This should be in full sentences and paragraphs and typed in Word.
No because it will lose $ per unit
No because it will lose $ per unit
No because it will exceed capacity
Yes, because it makes $ per unit in the short run
Yes, because it makes $ per unit in the short run
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