The company has received an offer from a Singaporean company to buy 6,000 bird houses at RM28.00 per unit. The new per unit variable selling cost of the additional units will be RM3.00, and RM24,000 of fixed administrative cost will be incurred. The sale would not affect the domestic sales or their cost. Analyse whether Sangkar Biru should accept this offer.

The company has received an offer from a Singaporean company to buy 6,000 bird houses at RM28.00 per unit. The new per unit variable selling cost of the additional units will be RM3.00, and RM24,000 of fixed administrative cost will be incurred. The sale would not affect the domestic sales or their cost. Analyse whether Sangkar Biru should accept this offer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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