Gwinnett barbecue sauce corporation manufactures a specialty barbecue sauce. gwinnett has the capacity to manufacture and sell 10,000 cases of sauce each year but is currently only manufacturing and selling 9,000. the following costs relate to annual operations at 9,000 cases:

total cost variable manufacturing $126,000
fixed manufacturing $45,000
variable selling and administrative $18,000
fixed selling and administrative $27,000

gwinnett normally sells its sauce for $30 per case. a local school district is interested in purchasing gwinnett’s excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 per case. this special order would not affect regular sales or total fixed costs or variable costs per unit.

if this special order is accepted, gwinnett’s profits for the year will: a. decrease by $4,000 b. decrease by $1,000 c. increase by $600 d. decrease by $6,600

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution