A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer‘ s name on the product. Which of the following is likely?
Question 7
Which statement is true concerning the decision rule on whether to make or buy?
Question 8
The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is
Question 9 Martin Company incurred the following costs for 70,000 units: Variable costs $ 420,000 Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $ 6,300 for shipping.
If Martin wants to earn $ 6,000 on the order, what should the unit price be?