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The normal price per unit is $120 Total cost per unit $90 (40% fixed cost) A customer from Saudi Arabia would like to import
The normal price per unit is $120 Total cost per unit $90 (40% fixed cost) A customer from Saudi Arabia would like to import 2500 units to sell in Saudi Arabia for a price $80 per unit. The maximum capacity is 10,000 units The local demand is 7000 units. Do you think the company should accept this special offer? Justify your answer. If the customer seeks to receive the goods in Saudi Arabia, and the cost of shipping is $15 per unit, Do you think the company should accept the offer in this case?
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Principles of Cost Accounting
Authors: Edward J. Vanderbeck
16th edition
9781133712701, 1133187862, 1133712703, 978-1133187868
