- 10 Marks
PM – Nov 2019 – L2 – Q1c – Decision-Making Techniques
Advise management on whether to accept a special order for 25,000 units of Apet at a price of N12 per unit, considering material procurement.
Question
A customer has just placed a special order for 25,000 units of Apet and the customer is willing to pay N12.00 per unit. Advise the management whether to accept or reject the order. Assume that for any shortfall in material A required to produce the order, it can be bought at a price of N2.00 per kg. (10 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Material Procurement, Relevant Costs, Special Order
- Level: Level 2
- Topic: Decision-making techniques
- Series: NOV 2019
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