Poseidon Co. makes boats. Below is their Operating Income Statement for the 1,500 boats they...
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Accounting
Poseidon Co. makes boats. Below is their Operating Income Statement for the 1,500 boats they normally sell in a year:
Neptune Inc. has asked Poseidon Co. for a special order of 10 boats for their touring company. To make the boats, Poseidon Co. will have to spend $15,000 on a machine part they will never use again but they wont have to pay any selling costs for these units.
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Should Poseidon Co. take the order if Neptune Inc. offers to pay $30,000 for the ten boats?
Why or why not?
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