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Should the offer be rejected or accepted and why

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Reference no: EM132768914

A manager of Burns Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 200,000 dozen golf balls at a price of $22 per dozen. The variable cost to manufacture a dozen golf balls is $18 per dozen. The full cost is $25 per dozen. Burns Sporting Goods Company plant has just enough excess capacity on the second shift to make the overseas order.

Problem 1: Should the offer be rejected or accepted? Why?

Reference no: EM132768914

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