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Assume you are a sales representative for Gigi Manis Sdn. Bhd. One of your customers is interested in buying some candy

Posted: Sun Apr 10, 2022 8:28 am
by answerhappygod
Assume you are a sales representative for Gigi Manis Sdn. Bhd.
One of your customers is interested in buying some candy that will
be given to members of the Rotary Club. The club members will be
marching in a community parade and will give the candy to children
who are watching the parade. The customer asks you to give a 30%
discount on the normal selling price of the candy to be given to
the club. You know that the contribution margin of the candy, based
on the regular selling price, is 40%. You are worried that if you
give this customer the 30% discount, other customers will demand
the same discount if they found out about it. At the same time,
your production will be at full capacity if you accept the order
from the Rotary Club customer. Your factory has never been at full
capacity and this is an opportunity to increase your company’s
revenue.
Using the case study technique, decide whether you should give
your customer that 30% discount. ( Total / Jumlah: 20 )