Your manufacturing plant is at 98% capacity. You normally sell roofing shingles for $8.00 a piece. You have a request for a special order to make and sell 5,000 of them at $6.95 each, and this will give you a positive contribution margin, but will not cover fixed cost per unit. Based on ALL this information should you take the order? Explain. Do not just write yes or no.

Your manufacturing plant is at 98% capacity. You normally sell roofing shingles for $8.00 a piece. You have a request for a special order to make and sell 5,000 of them at $6.95 each, and this will give you a positive contribution margin, but will not cover fixed cost per unit. Based on ALL this information should you take the order? Explain. Do not just write yes or no.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...

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