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Advice tan whether should accept the special order

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Reference no: EM132534436

Question 1: Tan runs a shop called ' All Juice Station' which produces 3,500 bottles of fresh apple juice everyday to meet his regular customers demands. The production capacity is 5,000 bottles a month. The cost of making a bottle of fresh apple juice is RM2.75, WHICH GOES INTO MATERIAL AND LABOUR. manufacuring overheads are fixed at RM1,500 per day. Terry, who owns a restaurant has made a special offer of buying RM 1.60 Per bottle from his and selling it under a generic name, Terry's Juice'. Terry wants to order 1,000 bottles each month. Advice Tan whether he should accept this special order.

Reference no: EM132534436

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