1
Q
what is a special order
A
special or non standard orders are requested to a business to supply a product or service which does not match their normal provision
often one off orders, or at a lower price
2
Q
what do managers need to consider before accepting a special order
A
is there enough capacity?
cost implications
brand reputation
potential profitability, is it worth it ?
ability to fulfill order
impact on established customers
3
Q
when are special orders less attractive
A
and a business has already broken even
4
Q
what is the contribution formula
A
selling price - variable costs
