Should mason accept or reject the special order

Assignment Help Operation Management

Reference no: EM131861153

Mason textile company manufactures high quality bed sheets and sells them in sets to a well known retail company for 64$ a set. Mason has sufficient capacity to produce 150000 sets of sheets anually. the retail company currently purchases 100000 sets each year.

Mason unit level cost is 36$ per set and its fixed cost is 840000 per year. a motel chain has offered to purchase 15000 sheet sets from mason for 45$ per set.

If mason accepts the order the contract will prohibit the motel chain from reselling the bed sheets. required: should mason accept or reject the special order? support your answer with appropriate computation.

Reference no: EM131861153

Questions Cloud

Opinion on whether investing substantial : Express your opinion on whether investing substantial resources in Corporate Social Responsibility activities adds sufficient value to the shareholders.

What are the argument for explaining evolutionary transition : According to your readings, what are the arguments for explaining the evolutionary transition from early hominins to the genus Homo?

What promotion strategy would you use for each market : You are the marketing manager for a start-up company that manufactures farm tractors. you are planning to enter the markets in the US, Japan, and India.

Business in a balanced scorecard : Help with strategic objectives for Organic to Go (fast food) your new division of the existing business in a balanced scorecard format

Should mason accept or reject the special order : Mason unit level cost is 36$ per set and its fixed cost is 840000 per year. a motel chain has offered to purchase 15000 sheet sets from mason for 45$ per set.

Explain the setting and stage directions in play you read : Explain the setting and stage directions in the play you read. Does the setting produce certain responses from the audience?

Define self-efficacy and identify and explain : Using Martha as an example, define self-efficacy and identify and explain its determinants.

Focus on the strategy and planning process of marketing : As a marketing manager discuss fully the marketing strategy process? Your answer should focus on the strategy and planning process of marketing?

What information or insights was most valuable : What information or insights was most valuable? What follow-up questions do you have, if any, and how do you plan to get your questions addressed?

User Account

All Pages