Asked by Nazareth Valladares on Jul 21, 2024

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Assume Melville anticipates selling only 50,000 units of Pong to regular customers next year.If Mowen Corporation offers to buy the special order units at $65 per unit, the annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

A) $60,000
B) ($90,000)
C) $159,000
D) $36,000

Special Order Units

Units that are produced or modified specifically as per the customer's specifications, often requiring a deviation from the normal production process.

Annual Financial Advantage

The financial benefit that is realized on an annual basis from a particular investment or action, compared to alternative options.

Accepting Order

The process of agreeing to fulfill a customer's request for goods or services.

  • Evaluate scenarios with special orders and ascertain the financial outcomes resulting from acceptance or rejection.
  • Assess the fiscal gain or loss incurred from taking special orders with existing capacity limitations.
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AP
Amber PerkinsJul 27, 2024
Final Answer :
C
Explanation :