Special Orders Flashcards
1
Q
Total contribution
A
contribution per item x number of items sold.
2
Q
factors that have to be considered before accepting a special order
A
- capacity
- labour demands
- future orders
- existing customers
- product adjustment
3
Q
Contribution per unit
A
Selling price per unit - variable costs per unit
4
Q
Break even
A
Fixed costs / contribution per unit
5
Q
Profit
A
Total revenue - total costs
