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Read Item 2. Properties, and review the utilization table on PDF page 28. The table indicates COKE has significant excess capacity at its plants. Assume
- Read Item 2. Properties, and review the utilization table on PDF page 28. The table indicates COKE has significant excess capacity at its plants. Assume that COKE receives a special order for the Memphis, TN plant, and the price is below the normal selling price. The special order will provide a positive gross margin, also assume that all fixed costs are shared and no additional direct fixed costs are added by accepting the special order. Will COKE accept the special order (yes or no). Why, or why not.
- 2. Read Item 2. Properties, and review the utilization table on PDF page 28. The table indicates COKE has significant excess capacity at its plants. Assume that COKE receives a special order for the Portland, Indiana plant, and the price is below the normal selling price. The special order will provide a positive gross margin, also assume that all fixed costs are shared and no additional direct fixed costs are added by accepting the special order. Will COKE accept the special order (yes or no). Why, or why not.
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