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When Trevor received a special-order request from Noah, he initially turned it down because the bid price of $10 per unit was only half of
When Trevor received a special-order request from Noah, he initially turned it down because the bid price of $10 per unit was only half of his usual selling price. It was also lower than his product costs (unknown to Noah): Manufacturing cost per unit $8 (includes $2 of fixed-MOH) Selling and administrative costs per unit $3 (all variable-MOH) If Trevor has enough capacity to take on this special order, did he make a good decision to pass on this deal, or did he make a mistake? Explain
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