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need help! thanks! Smooth Move Company manufactures professional papenweights and has been approsched by a new customer with ac offer to purchase 15 ,000 units
need help! thanks!
Smooth Move Company manufactures professional papenweights and has been approsched by a new customer with ac offer to purchase 15 ,000 units at a per-unit price of $8,00. The new customer is geographicaliy separated from 5 mooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 91,000 units but ptans to produce and sell only 65,000 in the coming vear. The normal sales price is s16 per unit: Unit cost information is as follows: Ir Smooth Move accepts the ordec, no fored mahufocturing activities wili be affected because there is sumhelent excess capacity. Requiredi 1. What are the aiternatives for Smooth Move? 2. CONCEPTUAL CONNECTION: Should Smooth Move accept the special order? By how much will proft increase or decrease if the oroer is acceoted? 3. CONCEPTUAL CONNECTION: Briefy explain the significance of the statement in the evercise that "existing sales will not be affected" (by the soecial saie) Step by Step Solution
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