Question

Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350. Fixed costs are already covered by regular business. The export order requires special packing costing ₹10 per unit, with no impact on regular business. Should the company accept the order?

A Reject, as the offer price is below normal price
B Accept, since it gives positive contribution
C Reject, as it does not cover full cost
D Accept only if export duty is exempted
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)