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What other considerations should taihape timbers take

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Reference no: EM132690279

Another timber company, Palmerston Plys Ltd has offered to make the 24 mm sheets for Taihape Timbers at a price of $45 per sheet. Palmerston Plys Ltd is not a local company. If Taihape Timber accepts this offer, it cannot use its unused capacity to produce any other products.

Required:

Question (a) Provide advice to Taihape Timbers as to whether or not they should accept Palmerston Plys' offer to manufacture the 24 mm sheets based purely on your financial calculations. Show all workings.

Question (b) What other considerations should Taihape Timbers take into account?

Reference no: EM132690279

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