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A Company Received a Special One-Time Order to Buy 6,000

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Essay

A company received a special one-time order to buy 6,000 of its portable radios for $20.The radios generally sell for $25.Each radio's total manufacturing cost is $21.50,which includes $2.50 of allocated fixed overhead.Should the company accept the special order?


Definitions:

Outsourcing

The business practice of hiring a third party to perform services, handle operations or provide goods that are either cost-prohibitive or not within the core competencies of the original company.

Employee Empowerment

The practice of giving employees autonomy, authority, and responsibility to make decisions regarding their specific organizational tasks.

Restructuring

The process of organizing a company, operation, or structure in a new way to increase efficiency or improve performance, which often includes changes in business model, operations, or strategy.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs in a pyramid.

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