Adelaide Strikers Ltd sells 25,000 cricket bats every year. Unit selling price is $300. Variable...
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Adelaide Strikers Ltd sells 25,000 cricket bats every year. Unit selling price is $300. Variable cost per unit is $195. Yearly fixed costs are $2,000,000. Adelaide Strikers Ltd has received a one-time only expression of interest' from an overseas buyer who intends to purchase 4,000 bats at a price of $220 per cricket bat. Adelaide Stars Ltd is currently operating at 80% capacity. Should Adelaide Stars Ltd accept this special one-time only order for 4,000 bats? Your explanation should make reference to the probable impact of the special one-time only order on net profit. Show all calculations. Ignore income tax.
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