EasyFlow is a manufacturer of ball point pens. The pens wholesale for $15 per dozen. EasyFlow has been approached by a major franchise with a special order for 75,000 dozen pens for a special promotional campaign at $10 per dozen. EasyFlow's total cost of production is $11 per dozen pens, as follows:

Prepare an incremental analysis to determine whether EasyFlow should accept the special sales order assuming fixed costs would not be affected by the special order.

Question

EasyFlow is a manufacturer of ball point pens. The pens wholesale for $15 per dozen. EasyFlow has been approached by a major franchise with a special order for 75,000 dozen pens for a special promotional campaign at $10 per dozen. EasyFlow's total cost of production is $11 per dozen pens, as follows:
  
Prepare an incremental analysis to determine whether EasyFlow should accept the special sales order assuming fixed costs would not be affected by the special order.

Quizplus · Accepted Answer

The Answer of EasyFlow is a manufacturer of ball point pens. The pens wholesale for $15 per dozen. EasyFlow has been approached by a major franchise with a special order for 75,000 dozen pens for a special promotional campaign at $10 per dozen. EasyFlow's total cost of production is $11 per dozen pens, as follows:
  
Prepare an incremental analysis to determine whether EasyFlow should accept the special sales order assuming fixed costs would not be affected by the special order.

EasyFlow Is a Manufacturer of Ball Point Pens