+1(805) 568 7317

live oak products has an annual plant capacity to produce 50 000 units its predicted 690934

Live Oak Products has an annual plant capacity to produce 50,000 units. Its predicted operations for the year follow:

Sales revenue (40,000 units at $20 each)


Manufacturing costs



$8 per unit



Selling and administrative costs


Variable (commissions on sales)

$2 per unit



Should the company accept a special order for 4,000 units at a selling price of $15 each, which is subject to half the usual sales commission rate per unit? Assume no effect on fixed costs or regular sales at regular prices. What is the effectof the decision on the company’s operating profit t?

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now