simbluesky7189 simbluesky7189

11-04-2020
Business

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Lancer Audio is considering an order for 120 DVD players, to be produced in the next 10 months, from a customer in Canada. The selling price will be $1,050 per unit (well under the normal selling price). However, the Lancer Audio brand name will not be attached to the product. What will be the impact on company profit associated with this order

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stanfordgoddy stanfordgoddy

13-04-2020

Answer:

Experience significant loss

Explanation:

The company would experience significant loss due to selling under the normal selling price.

However, assuming there was also some significant change in the total cost of production then it might not incur a loss even after selling below normal price.

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