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Should lisa accept the special order

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Lisa Co. receives an order for one of its products. The order demands a 10% discount from the standard price, but would be for a sizable volume: 13,000 units. Lisa typically sells the product for $20 per unit and incurs production costs of $401,500 fixed and $800,000 variable for the 80,000 units it produces in an average month. In addition, Lisa incurs $1,240,000 in fixed marketing and administration costs. Lisa ' factory is currently operating at full capacity.

Question 1: Should Lisa accept the special order? Provide proof of your answer. (No word limit for this, but try to be concise.)

Reference no: EM132524035

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