Sale-oriented decisions 3) Accept or decline a special order Suppose XYZ sells 2,500 desks per month. The monthly capacity of the facility is 3,000 units. Per-unit information: Selling price variable costs fixed costs $60 $25 $10 Yesterday, XYZ received a special order from company ABC, which offered to purchase 200 tables at $30 per unit. Question: a. As a manager, you need to make the decision whether to accept this special order. b. Now suppose XYZ sells 2,900 desks per month. Will you still accept ABC's special order of 200 desks? CASE 2: Prepare party food: Optimal mix of products with limited resources Mr. W and his wife decide to hold a housewarming party. They want to make sandwiches and eggrolls for guests. Suppose we can measure individuals' satisfaction Contribution margin per sandwich= 4 Contribution margin per eggroll = 6 A sandwich requires 15 minutes to make and 1 egg An eggroll requires 10 minutes to make and 3 eggs Mr. and Mrs. W have 30 eggs They have 2 hours to prepare for the food Question: 1) What is the optimal mix of sandwiches and eggrolls, given the limited time and eggs? 2) What is the optimal mix when relaxing time constraint from 120 minutes to 170 minutes? Page