SASA Trading involves in making bottled sauce called kicap. Currently, the company operating below its full capacity. The photos is the financial report for the year of 2021. Additional information: There’s one direct seller offered to purchase 7,000 bottles of kicap at $0.9 per bottle. Due to below selling price and its production cost per unit, the company is unwilling to accept the order. Requirements: a) Determine whether SASA Trading should accept or reject the order. Show the computations. b) Before making decision, discuss the relevant qualitative factors that need to be considered on whether to accept or reject it.
SASA Trading involves in making bottled sauce called kicap. Currently, the company operating below its full capacity. The photos is the financial report for the year of 2021. Additional information: There’s one direct seller offered to purchase 7,000 bottles of kicap at $0.9 per bottle. Due to below selling price and its production cost per unit, the company is unwilling to accept the order. Requirements: a) Determine whether SASA Trading should accept or reject the order. Show the computations. b) Before making decision, discuss the relevant qualitative factors that need to be considered on whether to accept or reject it.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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SASA Trading involves in making bottled sauce called kicap. Currently, the company operating below its full capacity. The photos is the financial report for the year of 2021.
Additional information:
There’s one direct seller offered to purchase 7,000 bottles of kicap at $0.9 per bottle. Due to below selling price and its production cost per unit, the company is unwilling to accept the order.
Requirements:
a) Determine whether SASA Trading should accept or reject the order. Show the computations.
b) Before making decision, discuss the relevant qualitative factors that need to be considered on whether to accept or reject it.
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