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QUESTION: Daniel Inc. produces Model XD42. A new customer has offered to purchase 5,000 units for $4.50 each. This customer would sell Model XD42

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QUESTION: Daniel Inc. produces Model XD42. A new customer has offered to purchase 5,000 units for $4.50 each. This customer would sell Model XD42 under a different name in foreign markets so Daniel Inc.'s existing sales are not expected to be affected. Daniel Inc. has capacity to sell 65,000 units and they currently produce and sell 55,000 units. The normal sales price for Module XD42 is $9 each.

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