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An online superstore has offered to purchase 15,000 backpacks (one time in one month) if the sales price was lowered to $40 per backpack for that one-time sale. (This specific sale is all or nothing - they will not purchase less than 15,000 backpacks). TrailPacker's maximum capacity is 25,000 units, and this special sale would not impact the sales price of TrailPacker's normal sales to their usual customer base.
Question A) List TrailPacker's options based on this Special Sale offer, their maximum capacity, and their usual production. (For example, one option is that TrailPacker can not accept the special sale and continue with their usual monthly sale to the outdoor retailers.) There should be at least 3 options - including the example provided.
Question B) a monthly contribution margin income statement for each of the options in A. Label each option.
Question C) Do you think TrailPacker should accept this sale? Why? Support your decision with evidence and analysis.
How can/should the Accounting Department make this determination and how will this impact the holding of a Responsibility Center accountable
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