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Should be accept for abc co

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Reference no: EM132633140

Problem 1: ABC co. has a Sales price of Rs. 100 and VC of Rs. 40. Its fixed costs are Rs. 6,00,000 per month. Its current sales is 12,000 units. Its current capacity is for 15,000 units per month. It has got a special order from an NGO for a sales price of Rs. 50 per unit. Should they accept?

A. Yes. As they are getting more than VC

B. Yes, as it is for a charitable purpose

C. No, as the curren selling price is Rs. 100 and they should not give discount of 50%

D. Yes, as they are above the breakeven point

Reference no: EM132633140

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