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NIKE 10 -K PROBLEM 5.63 Special Order As discussed in Item 1 of Nike's 10-K, one of the companies it owns is Cole Haan. Cole

image text in transcribed NIKE 10 -K PROBLEM 5.63 Special Order As discussed in Item 1 of Nike's 10-K, one of the companies it owns is Cole Haan. Cole Haan makes a variety of fashion footwear, such as dress shoes. One of these products is a men's loafer. This shoe is in strong demand. Suppose sales on this loafer during the present year, 20X0, are expected to hit DN DECISION MAKING the non During March, the company received two special-order requests from Nordstrom and Mach These orders are not part of the budgeted 1,000,000 unit sales for 20X0, but there is sufficient capisin for possibly one order to be accepted. Orders received and their terms are as follows: Order from Nordstrom: 75.000 loafers at $136.00 per unit, deluxe packaging Order from Macy's: 90,000 loafers at $130.00 per unit, standard packaging Since these orders were made directly to Cole Haan, no variable selling costs will be incund 1. Analyze the profitability of each of these two special orders. Which special order should accepted? 2. What other aspects need to be considered in addition to profitability

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