The Clock Builder Makes Grandfather Clock Kits That It Sells

question 78

Essay

The Clock Builder makes grandfather clock kits that it sells to hobbyists who then assemble and finish the clocks.The company has the capacity to make 5,000 of the kits,and its current volume is 3,000 kits.The costs of a clock kit are $300 for unit-level materials,$200 for unit-level labor,and $150 for an allocation of facility-level overhead.The normal selling price is $950.The Clock Builder has received a special order for 600 clock kits at a price of $600 each.
Required:
Should The Clock Builder accept the special order? Support your answer with appropriate computations.

Understand the relationship between legal acts and morality.

Define ethics and distinguish it from legal standards.

Appreciate the concepts of rule utilitarianism versus act utilitarianism.

Explore the concept of ethical accountability for artificial entities such as corporations.

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Definitions:

Child Support Payments

Financial contributions required by law to be paid by a non-custodial parent to support the wellbeing and living expenses of their children.

Secured Creditors

Creditors who are given a security interest in an asset of the debtor, which provides them with the right to seize the asset if the debt is not repaid according to agreed terms.

Automatic Stay

A provision in bankruptcy law that halts actions by creditors to collect debts from a debtor who has declared bankruptcy.

Adequate Protection

A principle in bankruptcy law that ensures creditors receive protection against the depreciation of their collateral during a bankruptcy case.