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We sell 5 0 . 0 0 0 units of a special material using 5 % of the capacity. There is a new order consisting

 

We sell 50.000 units of a special material using 5% of the capacity. There is a new order consisting 30.000 units from a foreign market for 600$. The managers of the business suggested the followings:

a) Marketing manager suggested to accept even a loss because this is a new market,

b) Production manager suggested to reject the offer because of the loss,

c) Finance manager suggested to accept it because the new order is profitable.

Financial Information:

Costs of the 50.000 Units production:

Direct Material 7.500.000 $

Direct Labor 7.500.000 $

Fixed Manufacturing Overheads 10.000.000 $

Variable Man. Overheads 10.000.000 $

Question:

Designate financially whose suggestion is good for the business.


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