question archive Jet, Inc

Jet, Inc

Subject:AccountingPrice:2.86 Bought7

Jet, Inc. makes a single product whose normal selling price is $20 per unit and variable cost is $8 per unit. A foreign distributor offers to purchase 3,000 units for $10 per unit. This is a one-time order that would not affect the company's regular business. Annual capacity is 10,000 units, but Jet, Inc. is currently producing and selling only 5,000 units, and fixed costs are unaffected by the order.

Should Jet accept the offer?


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