Casper Corporation budgeted 10,000 tablet cases for production during the current year. Casper has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs have been provided: Answer each of the following independent questions:
a. Casper recently received an order for 1,000 units from a new customer in a state in which it has never done business. This new customer has offered $43 per tablet case. Should Casper accept or reject the order? Show calculations.
b. Casper also received an offer from a different company to manufacture the same quality widgets for $39. Should Casper outsource the manufacturing all 10,000 widgets and instead, focus only on distribution? Show calculations.

Question

Casper Corporation budgeted 10,000 tablet cases for production during the current year. Casper has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs have been provided:  Answer each of the following independent questions: 
a. Casper recently received an order for 1,000 units from a new customer in a state in which it has never done business. This new customer has offered $43 per tablet case. Should Casper accept or reject the order? Show calculations.
b. Casper also received an offer from a different company to manufacture the same quality widgets for $39. Should Casper outsource the manufacturing all 10,000 widgets and instead, focus only on distribution? Show calculations.

Quizplus · Accepted Answer

The Answer of Casper Corporation budgeted 10,000 tablet cases for production during the current year. Casper has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs have been provided:  Answer each of the following independent questions: 
a. Casper recently received an order for 1,000 units from a new customer in a state in which it has never done business. This new customer has offered $43 per tablet case. Should Casper accept or reject the order? Show calculations.
b. Casper also received an offer from a different company to manufacture the same quality widgets for $39. Should Casper outsource the manufacturing all 10,000 widgets and instead, focus only on distribution? Show calculations.

Casper Corporation Budgeted 10,000 Tablet Cases for Production During the Current