Question
The Magnolia Company is considering taking individual orders and customizing them for customers. To finish the decoration, the company would have to pay additional materials
The Magnolia Company is considering taking individual orders and customizing them for customers. To finish the decoration, the company would have to pay additional materials costing an average of $8.00 per unit, additional labor of $6.00 per unit, and fixed costs would increase by $3,000. If the company estimates that it can sell 1200 decorations for $50.00 per unit each month. Magnolia Company sells decorations at a price of $30.00. The current profit margin is $10.00 per decoration.
REQUIRED: (SHOW ALL YOUR WORK)
Determine if the company should start taking the orders? Show the work.
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