Friday, October 10, 2014

Sesame Company has an opportunity to sell 100,000 clocks to a nonrecurring customer for $27 per...

Sesame Company has an opportunity to sell 100,000 clocks to a nonrecurring customer for $27 per clock. The clocks will be packaged and sold using the customerĆ¢€™s own logo. Packaging cost will increase by $1 per clock, but the company will not incur any of the current variable selling cost. If Sesame accepts the job, it will pay a $30,000 commission to the salesperson calling on this customer. The is sale will not interfere with budgeted sales and is within the companyĆ¢€™s relevant range of activity. Should Sesame make this sale?

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