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This will to some extent leads the decision to a rejecting direction.
Secondly, we look into the cost aspect about the original orders and the new one-time-only special order, assuming all the brochures produced can be sold out.
As shown above, I conclude that Finprint Company should not accept the one-time-only special order. There are two reasons: 1. Because there is no extra capacity to handle the special order, Company must use extra fixed direct labor, fixed manufacturing overhead, fixed sales cost, and fixed corporate cost to produce the 25,000 brochures. This results in a negative operating income that company will generate...
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