Gold River Cabinets Is Approached by Ms

question 14

Essay

Gold River Cabinets is approached by Ms.Mary Wong, 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:
Gold River Cabinets has excess capacity.Ms.Wong wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.Required:
a.For Gold River Cabinets, what is the minimum acceptable price of this one-time-only special order?
b.Other than price, what other items should Gold River Cabinets consider before accepting this one-time-only special order?
c.How would the analysis differ if there was limited capacity?

---

Definitions:

Charlayne Hunter

An American journalist and civil rights activist recognized as one of the first two African American students admitted to the University of Georgia in 1961.

Desegregation

The process of eliminating racial segregation, often specifically referring to the ending of enforced separation in schools and public places in the United States.

Nonviolent Resistance

A method of protest or struggle for political or social goals which rejects the use of violence, utilizing tactics like civil disobedience instead.

Gradualism

The belief in or the policy of advancing toward a goal by gradual, often slow stages, rather than by abrupt changes.