Tyler Company Has Been Approached by a New Customer with an Offer

question 39

Essay

Tyler Company has been approached by a new customer with an offer to purchase 6,000 units of its product KR200 at a price of $11 each.The existing sales would not be affected by this special order.Tyler normally produces 40,000 units but plans to produce and sell 30,000 in the coming year.The normal sales price is $18 per unit.Unit cost information is as follows:
If Tyler accepts the order,no fixed manufacturing activities will be affected because there is sufficient excess capacity.

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Definitions:

Gestation

The period of development from the fertilization of an ovum until birth in pregnant mammals, including humans.

Dishabituation

The renewal of attention to a stimulus following a change, after initial habituation (or decreased response) to the same or similar stimuli.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.