ACTG 2300 Lecture 12: Day 12 Notes
7 Feb 2017
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If the products are complimentary: you cannot sell 1 separate from the other, function is to attract customers, special order. Customers are asking for a price that is lower than the regular price. Ex: when coke puts santa on their cans. Safeway is not going to pay more for the can, but coca cola needs to do something new every now and then. You will get this whether you accept or reject, so might as well. Timer is a fixed cost: it is avoidable though, so if we accept we incur the 1,000, if we reject then we do not. If timer can be used in the future for other orders, then cost may be spread out. Why would we consider accepting: brand awareness that is 200+ students that now know your brand, maybe can allocate the cost of the timer and reuse it. V(special order) * p(special order) = 20 * 169. 95 = 20*169. 95 = 3,399.
