Blowing sand company has just received a one-time offer to purchase 8,400 units of its gusty model for a price of $25 each. the gusty model costs $29 to produce ($19 in variable costs and $10 of fixed overhead). because the offer came during a slow production month, blowing sand has enough excess capacity to accept the order.

1. should blowing sand accept the special order?
-yes
-no

2. calculate the increase or decrease in short-term profit from accepting the special order.
profit (increases or decreases) by

Costs of production that do not change when output changes. question 17 options: total revenuefixed incometotal costfixed cost

You are an employee of an u. s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u. s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u. s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?