Should mason accept-reject the special order


Discuss the below in detail:

Q: Mason textile company manufactures high quality bed sheets and sells them in sets to a well known retail company for 64$ a set. Mason has sufficient capacity to produce 150000 sets of sheets anually. the retail company currently purchases 100000 sets each year. mason unit level cost is 36$ per set and its fixed cost is 840000 per year. a motel chain has offered to purchase 15000 sheet sets from mason for 45$ per set. If mason accepts the order the contract will prohibit the motel chain from reselling the bed sheets. required: Should mason accept or reject the special order? Support your answer with appropriate computation.

Request for Solution File

Ask an Expert for Answer!!
Marketing Management: Should mason accept-reject the special order
Reference No:- TGS02041669

Expected delivery within 24 Hours