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TOTES Case Study Appleton Division LABS SPECIAL ORDER product. Consequently, the Historically, November is a low demand month for the TOTEs, company is seeking ways
TOTES Case Study Appleton Division LABS SPECIAL ORDER product. Consequently, the Historically, November is a low demand month for the TOTEs, company is seeking ways keep the production line running closer to full capacity during the month. to One of TOTEs. top customers has asked them to produce a tote for December. The customer special is willing to pay for the tote. The customer wants to order 10.000 totes and will pay all freight extra The customer wants red, glittery fabric and an additional patch attached to the tote. snowflake The fabric will cost an additional 40her tote, the snowflake patch wholesales it S1,000 per 10,000 patches, and sewing costs will increase by 15 tote. The company has the capacity to produce these 10.000 additional totes in November no additional equipment is required. Complete Exhibit 5-A to and answer the following questions: Why don't you need to take fixed costs into account for this special order? 2) What is the minimal amount T.O.T.E.S. should charge the customer for each special tote (round to the penny)? Why
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