Dear Kendra,
The main issue is that Clear Hear can only manufacture 70,000 of the 100,000 cell phones ordered and you must find a way to make up and deliver the remaining of the order. The downside of filling this order is the offered price of $15 per unit, when the asking price is $20. Another important consideration to take is that a very reputable manufacturer can fill this order on time for Clear Hear for a cost of $14 per unit.
Clear Hear is a cell phone manufacturer with the capacity to deliver up to 70,000 cell phones over a three months period.   One of Clear Hears’ business development specialists, recently received an order for 100,000 cell phones very similar to one of Clear Hears’ model, identified as the Alpha model.
Before Lisa makes a decision whether or not proceed with this order request from Big Box, Lisa Norman, the production manager for Clear Hear must keep in mind her company’s statement of values and her unit profitability report with are displayed below:
Clear Hears’ statement of values include the following:
• Keep our employees working.
• Provide our customers with products on time and that reliably meets or exceed their expectations.
• Treat our business partners the same, as we want to be treated.

The Unit Profitability Report below displays the follow information:

Unit Profitability Report
                                                Alpha model                                 Beta model                                
Price per unit                             20                                                   30                                        
Variable cost per unit               8                                                     12                                        
Fixed overhead                         9                                                     10                                        
Profits                                         3...