Student Doubts Forum

question 3 fall 2020/2021

Re: question 3 fall 2020/2021

by Pedro Pinto da Silva Perdigão -
Number of replies: 0
Hello Gabriela,

I don't have the solution for the exercise, but I agree with your rationale. Answering to your points:

1) The exercise doesn't make it clear if the company has already accepted the new order from the domestic client, but I'm assuming they have which would make those 10 000€ a sunk cost, therefore irrelevant for the decision-making.
2) No, only the relevant revenues, this is, the revenues that arise with this decision. Remaining revenues are already taken for granted.

Good study!