Memorable Moments sells customizable gifts with a unit selling price per gift is $50, a unit variable cost of $27, and unit fixed cost of $13. It has recently been approached by a local high school with a request to make a custom graduation picture frame for each of the 1,200 students in the current graduating class at a price of $30 per frame. Memorable Moments management is very concerned that by accepting this special order, it may impact the profitability of the company but would like to be socially responsible to the local community. Memorable Moments is currently operating at capacity, and in order to fulfill the special order, will have to add additional factory capacity of $4,000 for this job. Using the decision-making framework, determine if Memorable Moments should accept the special-order request assuming that they do not have sufficient operating capacity using quantitative considerations only.

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The Answer of Memorable Moments sells customizable gifts with a unit selling price per gift is $50, a unit variable cost of $27, and unit fixed cost of $13. It has recently been approached by a local high school with a request to make a custom graduation picture frame for each of the 1,200 students in the current graduating class at a price of $30 per frame. Memorable Moments management is very concerned that by accepting this special order, it may impact the profitability of the company but would like to be socially responsible to the local community. Memorable Moments is currently operating at capacity, and in order to fulfill the special order, will have to add additional factory capacity of $4,000 for this job. Using the decision-making framework, determine if Memorable Moments should accept the special-order request assuming that they do not have sufficient operating capacity using quantitative considerations only.

Memorable Moments Sells Customizable Gifts with a Unit Selling Price