Chat with us, powered by LiveChat Rianne Company produces a light fixture with the f - BonPapers

Rianne Company produces a light fixture with the f

Rianne Company produces a light fixture with the following unit cost:Direct materials $2Direct labor .. 1Variable overhead 3Fixed overhead . 2Unit cost $8The production capacity is 300,000 units per year. Because of a depressed housing market, the company expects to produce only 180,000 fixtures for the coming year. The company also has fixed selling costs totaling $500,000 per year and variable selling costs of $1 per unit sold. The fixtures normally sell for $12 each. At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 100,000 fixtures for $7 each. The customer also offered to pay all transportation costs. Since there would be no sales commissions involved, this order would not have any variable selling costs.Required:1. Based on a quantitative (numerical) analysis, should the company accept the order?2. What qualitative factors might impact the decision? Assume that no other orders are expected beyond the regular business and the special order.

Order an Excellent Paper with Bonpapers.com Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?