Part A Water Sports Company (WSC) has just received a request from a hotel in...
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Part A Water Sports Company (WSC) has just received a request from a hotel in Ocho Rios which specializes in tourism entertainment. The customer has asked WSC to provide 100 specially modified scooter bikes at a price of $200 each. The normal selling price of the standard scooter model is $300. WSC can easily modify its scooter model to fit the specifications of the special order, and its unit product cost is $250 as shown below: The order will have no effect on the company's fixed manufacturing overhead costs. In addition, the company would have to pay a graphic design artist $800 to design and cut stencils that will be used for spray painting the company's logo on the bikes. The production manager says that she can handle the special order without disrupting any of the regular scheduled production runs.. Required Advise the management of Water Sports Company whether the special order should be accepted. Show all workings. (15 marks)
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