Consider the following information prepared based on a


Consider the following information, prepared based on a monthly capacity of 50,000 units: Category Cost per Unit Variable manufacturing costs $28 Fixed manufacturing costs $6 Variable selling costs $7 Fixed selling costs $9 Capacity cannot be added in the short run and the firm currently sells the product for $58 per unit. The company is currently producing 50,000 units per month. A potential customer has contacted the firm and offered to purchase 5,000 units this month only. The customer is willing to pay $53 per unit. Since the potential customer approached the firm, there will be no variable selling costs incurred. Should the company accept the special order? Why or why not? Be specific.

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Financial Accounting: Consider the following information prepared based on a
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