Identify and briefly discuss ONE (1) qualitative factor Mercury Cuisine Limited should consider before deciding...
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Accounting
Identify and briefly discuss ONE (1) qualitative factor Mercury Cuisine Limited should consider before deciding whether or not to accept the special order.
On the basis of financial considerations alone, determine the minimum acceptable special order price that Mercury Cuisine Limited should accept from The Kitchen Shop. Provide supporting calculations.
Special Order Mercury Cuisine Limited produces stainless steel cookware for $150.00 per unit. It incurs the following unit costs during production: Direct materials Direct labour Variable overhead Fixed overhead Total $70.00 13.00 10.00 17.00 $110.00 Mercury Cuisine Limited have received a special order from The Kitchen Shop who would like to purchase 1,500 units at a price of $135.00 each. Annual production capacity is 10,000 units and Mercury Cuisine Limited currently produces at 9,500 per year
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