Vortec IncOPTION1OPTION 2OPTION 1OPTION 2CURRENT C.P.UPROPOSEDC.P.UCURRENTQTYPROPOSEDQTY100000102000SALES54500000508000LESS:VARIABLE4.54.5450000459000CONTIBUTION0.5-0.55000049000(LOSS)P.V. RATIO10%(NEGATIVE)LESS:FIXED2750027500PROFIT2250021500AVERAGE C.P.U4.7754.770-1000LOSS DUE TO ADD. ON FOR 21. Should Vortec reject the Medsupplies offer because the $4/unit offered is less than average costs of $4.47? Wnot?SUGGESTION:Considering the profitability ratio of Vortex co., going with additional 2000 qty may not be a wise decisionThough it has opportinuity to optimizes the fixed cost and still has positive consolidated margin of safety,
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