Tyler Company has been approached by a new customer with an offer to purchase 6,000 units of its product KR200 at a price of $11 each.The existing sales would not be affected by this special order.Tyler normally produces 40,000 units but plans to produce and sell 30,000 in the coming year.The normal sales price is $18 per unit.Unit cost information is as follows:
If Tyler accepts the order,no fixed manufacturing activities will be affected because there is sufficient excess capacity.

Question

Tyler Company has been approached by a new customer with an offer to purchase 6,000 units of its product KR200 at a price of $11 each.The existing sales would not be affected by this special order.Tyler normally produces 40,000 units but plans to produce and sell 30,000 in the coming year.The normal sales price is $18 per unit.Unit cost information is as follows:
  If Tyler accepts the order,no fixed manufacturing activities will be affected because there is sufficient excess capacity.

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The Answer of Tyler Company has been approached by a new customer with an offer to purchase 6,000 units of its product KR200 at a price of $11 each.The existing sales would not be affected by this special order.Tyler normally produces 40,000 units but plans to produce and sell 30,000 in the coming year.The normal sales price is $18 per unit.Unit cost information is as follows:
  If Tyler accepts the order,no fixed manufacturing activities will be affected because there is sufficient excess capacity.

Tyler Company Has Been Approached by a New Customer with an Offer