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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?