Mason Has Received a Special Order for 1,000 Units of Its

question 67

Essay

Mason has received a special order for 1,000 units of its product at a special price of $250.The product currently sells 18,000 units for $300 and has the following manufacturing costs:
Assume that Mason has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable.
a.If Mason accepts the order,what effect will the order have on the company's short-term profit?
For the next two questions,now assume that Mason has sufficient capacity to fill 500 units of the order without harming normal sales.
b.If Mason accepts the order and fills it completely,what effect will the order have on the company's short-term profit?
c.If Mason accepts the special order,what average price should Mason charge to make a $20,000 incremental profit?

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Definitions:

Homosexuality

An orientation of sexuality identified by feeling romantic or sexually attracted to people of one's own gender.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Nurture

The process of caring for and encouraging the growth or development of someone or something.

Genetic Component

The portion of variation or difference in a trait within a population that can be attributed to genetic factors.