Read the following details carefully. 1) In a month, Al Zahra company normally produces and sells 10000 units. The selling price per unit is $25 and there is excess capacity to produce an additional unit of 5000. The variable manufacturing cost per unit is $15. Total fixed manufacturing costs are $50,000. Variable operating cost is $5 per unit and fixed operating costs total $20,000. A customer placed a special order for 2000 units for $20 each. The customer is willing to shoulder the delivery costs; hence the business will NOT incur additional variable operating costs of $5. a) Should the company accept or reject the special order? Justify your answer. b) What if the order was for 3000 units at a selling price of $14?

You are required to answer the following questions 80 words under each section given below: I) Introduction a) Explain generally about situations where managers accept/reject special sales orders. II) Discussion

a) Answer to the question here III) Reviews -write in your own words- IV) Conclusion V) -write in your own words- VI) Bibliography/References