The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
The Sales department has received an offer for a new monthly contract for finished toasters. Management wonders if accepting this order would be profitable.
Using the above information relating to the special order as well as the production and sale of finished toasters, and without considering other cost-saving options, would this new production commitment prove profitable to the company?

Question

The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
The Sales department has received an offer for a new monthly contract for finished toasters. Management wonders if accepting this order would be profitable.
   Using the above information relating to the special order as well as the production and sale of finished toasters, and without considering other cost-saving options, would this new production commitment prove profitable to the company?

Quizplus · Accepted Answer

The Answer of The Consumer Products division of Standard Appliances has been struggling lately. Management has noticed a steady level of losses being reported, and is concerned about how to turn the division around. The division manager reports that the production of Toasters is causing the issue. As part of an in-depth analysis, management wants you to evaluate the following possible solution.
The Sales department has received an offer for a new monthly contract for finished toasters. Management wonders if accepting this order would be profitable.
   Using the above information relating to the special order as well as the production and sale of finished toasters, and without considering other cost-saving options, would this new production commitment prove profitable to the company?

The Consumer Products Division of Standard Appliances Has Been Struggling