Should the company take up the contract

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Question - A special contract had been offered to a company to supply it's products on a monthly basis for a period of 36 months to a sport complex in Rwanda. The volume of transaction is estimated to be about $10,500,000 per month. The gross profit margin is however very low at 4% and it involve logistic costs of about $ 400,000 per month.

a) Should the company take up the contract? If the answer is yes, which plastics factory should be signing the contract?

b) What are the qualitative considerations that must be taken into account in the decision?

Reference no: EM132802037

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