Answer the following questions using the information below:
Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:
Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.
-Other than price, what other items should Heck's Kitchens consider before accepting this one-time-only special order?
A)reaction of shareholders
B)reaction of existing customers to the lower price offered to Mr. Louis Cifer
C)demand for cherry cabinets
D)price is the only consideration

Question

Answer the following questions using the information below:
Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:
  Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.
-Other than price, what other items should Heck's Kitchens consider before accepting this one-time-only special order?
A)reaction of shareholders 
B)reaction of existing customers to the lower price offered to Mr. Louis Cifer 
C)demand for cherry cabinets 
D)price is the only consideration

Quizplus · Accepted Answer

Heck's Kitchens should consider the reaction of existing customers to ensure that offering a lower price to Mr. Louis Cifer does not negatively impact their relationship or future sales with current customers.

Answer the Following Questions Using the Information Below