Fleming Company Had the Following Results of Operations for the Past

question 62

Essay

Fleming Company had the following results of operations for the past year:
$$\begin{array} { l c } \text { Bales } ( 10,000 \text { units at } \$ 6.80 ) & \$ 68,000 \\\text { Materials and direct labor } & ( 20,000 ) \\\text { Overhead (40\% variable) } & ( 10,000 ) \\\text { Selling and administrative expenses (all } & ( 6,000 ) \\\text { fixed) } & \\\text { Operating income } & \$ 32,000 \end{array}$$
A foreign company (whose sales will not affect Fleming's regular sales)offers to buy 2,000 units at $5 per unit.In addition to variable manufacturing costs,there would be shipping costs of $1,200 in total on these units.Should Fleming take this order? Explain.

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Definitions:

Opiates

Opium and its derivatives, such as morphine and heroin; depress neural activity, temporarily lessening pain and anxiety.

Substance Use Disorder

A medical condition characterized by the compulsive use of substances despite harmful consequences, leading to significant impairment or distress.

Psychoactive Drugs

Substances that alter brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.

Relationships

The way in which two or more people or things are connected, or the state of being connected, ranging from interpersonal to professional and ecological connections.