Founded in 1983,Beverly Hills Fan Companyis located in Woodland Hills, California. With 23 employees and sales of less than $10 million, the company is relatively small. Management feels that there is potential for growth in the upscale market for ceiling fans and lighting. They are particularly optimistic about growth in Mexican and Canadian markets.
Presented below is information from the president”s letter in the company”s annual report.
Instructions
(a)What points did the company management need to consider before deciding to offer the special-order fans to customers?
(b)How would incremental analysis be employed to assist in this decision?
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