Adamyan Co

question 162

Essay

Adamyan Co.manufactures and sells medals for winners of athletic and other events.Its manufacturing plant has the capacity to produce 15, 000 medals each month;current monthly production is 12, 750 medals.The company normally charges $120 per medal.Cost data for the current level of production are shown below: The company has just received a special one-time order for 700 medals at $83 each.For this particular order, no variable selling and administrative costs would be incurred.This order would also have no effect on fixed costs.
Required:
Should the company accept this special order? Why?

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Definitions:

Organizational Politics

The application of influence and social connections in an organization to bring about changes for the advantage of either the individual or the organization as a whole.

Organizational Politics

Leveraging authority and cultivating relationships in a company to implement changes that are favorable to the person or the company itself.

Distrust

The feeling of skepticism or lack of confidence in the reliability, truth, or ability of someone or something.

Influence Tactic

Methods or strategies used by individuals or groups to alter or control the behavior or attitudes of others.