Special Orders

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Created by: Joebarlow_10
Created on: 29-05-19 16:13

What are the two main features of a special order decision?

Selling the same product lower than the normal sales price/ Selling a modified product at a higher price

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what is the first stage of examining a special order?

Using a quantitative measure contribution( the difference between revenue and variable cost per unit.)

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when does contribution become profit?

When all costs are covered and therefore additional contribution becomes profit.

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Total Contribution formula?

Contribution per item x number of items sold.

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What factors should be considered when receiving a special order?

. Capacity – has the business the spare capacity or is this the best way to utilise the spare capacity/ Future orders – could the special order lead to a more regular order?/ Labour demands – would the special order be completed in normal hours or w

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Other cards in this set

Card 2

Front

what is the first stage of examining a special order?

Back

Using a quantitative measure contribution( the difference between revenue and variable cost per unit.)

Card 3

Front

when does contribution become profit?

Back

Card 4

Front

Total Contribution formula?

Back

Card 5

Front

What factors should be considered when receiving a special order?

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Special Orders