The following selected information is available for the year 2012 for Rocket Corporation. - 14301

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yousafbhutta

yousafbhutta

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Price: $3.00
  • From: Business,
  • Posted on: Mon 08 Oct, 2012
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Request Description

 

The following selected information is available for the year 2012 for Rocket Corporation.

Units      45,000

Sales    $1,260,000

Variable cost #1 $146,250

 Variable cost #2  $319,500

Variable cost #3    $216,000

Fixed cost #1    $202,000

Fixed cost #2       $170,000

Fixed cost #3     $90,000

Rocket Corporation has been approached by a company which wishes to place a onetime order for the product Rocket Corp sells. However, they re only willing to pay $21 for the product, however, this customer’s product requirements would result in a $2 increase in variable cost #1 and a $4,000 increase in fixed cost #2. The customer is willing to buy 6,000 units of the product under these terms.

Required:

How much money would Rocket Corporation make or lose on this special order?

Should Rocket Corporation accept this special order?

Solution Description

Kindly give me your A++

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