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A major health food chain has approached Fruity plc to ask if the company would...

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Accounting

A major health food chain has approached Fruity plc to ask if the company would be willing to provide 100,000 drinks in the forthcoming year at a price of PKR 25 per drink. The company will only accept 100,000 drinks.

Assume that the company has finalized production and sales plans for the year at a price of PKR 100 and a volume of 360,000 drinks.

Required: e) Assess whether Fruity Plc should accept this special order and calculate the companys profit if the order is accepted.

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