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. Using the decision-making framework, determine if Memorable Moments should accept the special order request assuming that they have sufficient operating capacity.

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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. Using the decision-making framework, determine if Memorable Moments should accept the special order request assuming that they have sufficient operating capacity.

Memorable Moments Sells Customizable Gifts with a Unit Selling Price