Special Orders

This video goes over when to accept or reject a special order. If the expected sales revenues are more than the expected INCREASE in variable and fixed costs, then you would accept the special order.

[@ahmedtamer3427]

Thanks again, I was facing complexity to understand them but really this was of great help to me.

[@alqasimalqasim2742]

Before I go on and watch the video I would like to say I love you so much Professor

[@manspicy8657]

Thank you it is really helpful:D

[@tesfayeminlarghe9438]

Sidise Co. produces computers, which sell for $400 each. A foreign distribution wants to order 1,000 computers at $300 each. Production costs per unit at capacity of 30,000 units are: Direct materials $90 Direct labor 120 Variable overhead 50 Fixed overhead 60 Required A. How much is the relevant cost of producing one more computer? B. What is the effect on profit of accepting the special order? how we do this?

[@javvadipadmaja1562]

tesfaye minlarghe profit is 50000

[@javvadipadmaja1562]

And I think 250 is the cost of producing one more computer

[@javvadipadmaja1562]

If not let me know the options so I can stress more to get the right answer

[@TheDilipjacob]

What happens if we don't have the capacity?? What do we do then?

[@mattfisher64]

Dilip Jacob If there isn't capacity, then you wouldn't accept the order

[@awinijudah3474]

I have a question here please