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Your company purchased a $5,000 piece of etching equipment for a special order. You are now contacted about a new special order that requires a

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Your company purchased a $5,000 piece of etching equipment for a special order. You are now contacted about a new special order that requires a $7,500 piece of stamping equipment. In working through the analysis of whether to take this new order or turn it down, the original equipment is O A sunk cost, since it cannot be used for the new order. An avoidable cost in considering the new order. Next You have the opportunity to purchase raw materials from a new vendor at a much lower cost. What might affect this decision from a qualitative standpoint? Is the new vendor willing to offer you payment terms? is the quality of the product up to the standards that will keep your product at a high quality? Can you get the product in a timely manner? Previous Next W

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