You are evaluating orders from two customers but can accept


Question - You are evaluating orders from two customers but can accept only one of the orders because of your company's limited capacity. the first order is for 100 units of a product with a contribution margin ratio of 60% and a selling price of $1,000. The second order is for 500 units of a product with a contribution margin ratio of 20% and a selling price of $800. The incremental fixed costs are the same for both orders. Which order should you accept? Why? Support your decision with calculations.

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Accounting Basics: You are evaluating orders from two customers but can accept
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