Cosmos corporation manufacures collectible toy cars in a plant that has the capacity to produce 3,000 cars each month, current month the production is 80 percent of capacity the normal selling price is $36 unit level cost and facility costs for the current activity level is
- unit level cost $ 28,560
- Facility cost
- Manufacturing 96,000
- markiting 78,000
- total cost $ 202,560
cosmos has just received spicial order from a japaness company for 1,100 cars at $ 31 each with target completion date in three months cosmos has never competed in the globle marketplace the company has hired a consultant for $ 5,500 each month of the contract optain advice on conducting business in japan.
A does cosmos have sufficient productive capacity to accept the order
B is the order attractive from financial prespective show your calculation
C disuse any other consideration should include in analyzing order
D is it benificient for company to take a loss on this order if it is desire to enter the japanese market