posted by George on .
Normal price of mini-scooters are $120 per scooters, ABC estimates 400,000 scooters to be sold for Year 2013.
Material costs are $20,0000 per year to produce these scooters.
Variable costs are $10.00/per mile delivery and $50.00/scooter for handling charges.
ABC is approached by Pleasure travel to purchase 5000 scooters but they want a special price of $100/per mini-scooter instead of $120, and this would require 5000 delivery miles and 750 separate handing fees as storage and warehousing is required during shipment. What would the profit or loss be from this discount order if ABC accepts the order?