Explore BrainMass

Special Order Decision for the Harley Company

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Brief Exercise 23-3

In Harley Company it costs $28 per unit ($17 variable and $11 fixed) to make a product that normally sells for $50. A foreign wholesaler offers to buy 4,100 units at $28 each. Harley will incur special shipping costs of $2 per unit. Assuming that Harley has excess operating capacity.

Indicate the net income (loss) Harley would realize by accepting the special order. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

Reject Order Accept Order Net Income Increase




Net income/(loss)


The special order should be accepted or rejected?

© BrainMass Inc. brainmass.com October 25, 2018, 9:59 am ad1c9bdddf

Solution Summary

This solution calculates the net income loss in either rejecting or accepting the special order in an excel spreadsheet of the Harley Company.

See Also This Related BrainMass Solution

AOL and Time Warner Merger; Dunlap and Sunbeam; Teerlink and Harley Davidson

In your text, review the readings and answer all of the associated questions for the following Cases for Critical Thinking:

AOL and Time Warner: Fragile Promises
(Pages 161-162).


Why did the media refer to the merger as the deal of the century?
Why was Time Warner eager to merge with AOL?
What challenges did AOL and Time Warner face as a merged company?.
Visit the TimeWarner Website (http://www.timewarner.com). Review the site to get the latest news about the fate of the merger. How is the company doing financially? How much turnover has occurred among high-level executives? If any parts of the business have been sold off, what has the acquiring company said about future prospects?
The Ax Falls on Sunbeam's Chainsaw Al.

(Pages 187-188). Questions:

Why were Dunlap's goals unrealistic for Sunbeam?
Was Dunlap's slice-and-dice plan a long-term or short-term strategy. Please explain.
Why did Dunlap's turnaround strategy backfire?

Harley-Davidson-From Dysfunctional to Cross-Functional. (Pages 212-213).


During Teerlink's tenure as Harley's Chief Financial Officer, was the
organization structure flat or tall? Centralized or decentralized?
Explain your answers.
As Chief Executive Officer, how did Teerlink change the organizational structure?
Why does Harley-Davidson include outside suppliers on its cross-functional teams

View Full Posting Details