Summary
Summary Special orders
- Institution
- WJEC
Summary notes for special orders.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
Special ordersOccasionally, businesses might receive orders for their products that differ in terms of the profile of
their regular orders. The difference is often based on price paid, the quantity ordered or the lead
time.
A special order can involve:
Selling the same product lower than the normal sales price.
Selling a modified product as a higher price.
To see whether a business should accept the special order, you should:
Find contribution per unit (SP – VC).
Find total contribution – (total contribution = contribution per unit * number of items sold
(quantity))
Total contribution = ((SP – VC) * Q).
If there is a positive contribution, the business should accept the order.
However, other factors have to be considered:
capacity – space to store special orders.
Labour demand – extra staff to produce the large quantity of goods or staff with experience
to produce the good, are staff overworked?
Future orders – loyal consumers.
Existing consumers
Product adjustment – do you need more machinery, tools, etc.
How quick consumers want the order.
Advantages of accepting the order:
Further orders may follow.
Spare capacity is used.
New order may give access to new markets.
Workers are kept busy.
Good image for the business.
Disadvantages of accepting the order:
Pressure on staff.
Quality issues.
Existing customers response.
Lack of time for other aspects such as training.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AdamSidat. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now