Business, 06.07.2019 00:10 sarahelisabeth444

Arizona ceramics is approached by clarion hotels for a one-time special order of 1,000 ceramic vases at $10 per ceramic vase. managers at arizona have the following information relating to the cost: variable manufacturing costs$6fixed manufacturing costs4variable marketing costs2fixed marketing costs1full costs$13should arizona ceramics accept the special order? assume arizona ceramics has idle capacity of 2,000 units. yes, arizona ceramics should accept the special order as it recovers variable manufacturing costs and earns a contribution margin of $4 per ceramic vase. yes, arizona ceramics should accept the special order as it recovers total variable cost of $8 and also earns a contribution margin of $2 per ceramic vase. no, arizona ceramics should not accept the special order as it recovers only the manufacturing costs and earns no additional contribution. no, arizona ceramics should not accept the special order as it does not recover the full cost of the product.

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Arizona ceramics is approached by clarion hotels for a one-time special order of 1,000 ceramic vases...

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