A company that specializes in tours in England has offered to purchase 5,000 umbrellas at $ 11 each from Hampshire. The variable selling costs of these additional units will be $ 1.30 as opposed to $ 1.10 per unit. Also, this production activity will incur another $ 15,000 of fixed administrative costs. Should Hampshire agree to sell these additional 5,000 umbrellas to the touring business? Provide calculations to support your decision.
Additionally, complete Parts B and D of Section I as outlined in the Final Project Guidelines and Rubric document.
Section II: Inventory Management
The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units.
Beginning Inventory: 0 Umbrellas
Production: 80,000 Umbrellas