Kitchens Sales Inc

question 32

Multiple Choice

Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:

Kitchens Sales inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $66 per unit. The average marketing cost of Kitchens Sales product is $173 per order. Other than price, what other items should Kitchens Sales consider before accepting this one-time-only special order?

• A) reaction of shareholders
• B) reaction of existing customers to the lower price offered to Mr. Louis Cifer
• C) demand for cherry cabinets
• D) price is the only consideration

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Definitions:

Core Culture

The fundamental beliefs, values, and practices that are central and intrinsic to an organization or group, shaping its identity and ways of operating.

Task Environment

The immediate external environment that affects an organization's operations, including competitors, customers, suppliers, and regulations.

Stakeholders

Individuals or groups that have an interest in the success and outputs of an organization.

Symbolic Leaders

Individuals who represent the values, norms, and ideals of a group, often inspiring others through their representation rather than through direct actions.