One-Time-Only Special Order
One type of decision that affects Output levels accepting or rejecting special order When there is idle production capacity and the special order have on long-run implications. We use the term one-time-only special order to describe these these conditions.
Example 1: surf Gear manufactures quality beach towels at its highly automated Burlington, North Carolina, plant. The plant has a production capacity of 45,000 towels each month. Current monthly production is 30,000 towels Retail department stores account for all existing sales. Exhibit 11-4 show the expected results for the coming month (August). (These amounts are predictions based on past costs.) We assume that in the short run all costs can be classified as either fixed or variable for a single cost driver (units of output).