Solution-Advise tan or whether he should accept the special

Advise tan or whether he should accept the special order

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Reference no: EM132534406

Tan runs a shop called 'all juice station' which produces 3,500 bottles of fresh apple juice every day to meet his regular customers' demands. the production capacity is 5,000 bottles a month. the cost of making a bottle of fresh apple juice is rm2.75, which goes into material and labour. manufacturing overheads are fixed at rm1,500 per day. terry who owns a restaurant, has a made a special offer of buying rm1.60 per bottle from him and selling it under a generic name, 'terry's juice.' terry wants to order 1,000 bottles each month.

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Question 1: Advise tan or whether he should accept the special order.

Reference no: EM132534406

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Advise tan or whether he should accept the special order

Reference no: EM132534406

Reference no: EM132534406

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