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Given the following data for Tan Company Sales (in units) 60,000...

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Accounting

Given the following data for Tan Company
Sales (in units) 60,000
Selling price per unit 28
Manufacturing costs per unit:
Materials 5
Direct labor 4
Overhead
Variable 4
Fixed 10
Total 23
Gross margin 5
Selling and admin. Expenses per unit 2
Operating income 3
A company in a foreign market offer to buy and the offer specifies the following data
units to be sold 10,000
price per unit 13
What is the logical decision about this special offer
1.

Do not reject the special offer
2.

Reject the special offer
3.

Indifferent to reject or not the special offer
4.

Always accept the special offer

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