(Solution) - A manager of Dutch s Sporting Goods Company is considering accep -(2025 Original AI-Free Solution)
Paper Details
A manager of Dutch?s Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 20,000 dozen golf balls at a price of $15.00 per dozen. The variable cost to manufacture a dozen golf balls is $13.00 per dozen. The full cost is $17.00 per dozen. Dutch?s has a normal selling price of $23.00 per dozen. Dutch?s plant has just enough excess capacity on the second shift to make the overseas order.
What are some considerations in accepting or rejecting this order?