Chapter 6, Problem 6.9E

To determine

Concept Introduction:

For accepting an extra offer, a company needs to recover at least the variable cost from that offer. To recover cost from that offer,the company sells it at variable cost. Accepting these types of fixed costs is irrelevant for accepting the offer.

Requirement-1:

To Calculate:

Financial advantages or disadvantages of accepting the special order.

To determine

Concept Introduction:

For accepting an extra offer company need to recover at least variable cost from that offer. To recover cost from that offer company sold it at variable cost. To accept these types of the fixed cost is irrelevant for accepting the offer.

Requirement-2:

To Calculate:

Minimum Selling price to sale the product.