Bert Asiago, as salesperson at Convertco, received an order from
a potential new customer for 50,000 units of the company's single
product. The price came in at $25 below the regular selling price
of $65. Asiago knows that Convertco has the capacity to produce the
product without affecting regular sales. He spoke to Bia Morgan,
the controller, who informed him that at the $40 selling price,
it's $42 of variable costs won't be covered. She recommends
rejecting the order.
Bert...