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Veronique Unique Inque. incurs costs of $33 per unit ($21 variable and $12 fixed) to make a gadget it normally sells for $58. Veronique has
Veronique Unique Inque. incurs costs of $33 per unit ($21 variable and $12 fixed) to make a gadget it normally sells for $58. Veronique has received two special offers: Wholesaler Alpha offers to buy 9,000 units at $46 each and Wholesaler Beta offers to buy 15,500 units at $42 each. Beta's order would require the acquisition of special equipment at a cost of $200,000; this specialized equipment could not be used for any other processes.Assuming Veronique has the capacity to accept only one of these offers, which one should it accept?
- AVeronique should accept offer Alpha because it will result in $99,500 more net income than offer Beta.
- BVeronique should accept offer Beta because it will result in $100,500 more net income than offer Alpha.
- CVeronique should accept offer Beta because it will result in $36,000 more net income than offer Alpha.
- DVeronique should accept offer Alpha because it will result in $85,500 more net income than offer Beta.
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