Production capacity of 15000 units manuf costs 12unit

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Production capacity of 15000 units. Manuf costs: $12/unit variable, $90k in fixed, s&a: $3/unit variable and $60k fixed. Company sells 12,000 units annualy at a price of $28. Speical order wants to buy 3000 units for $20 each. Regular sales will not be affected, order can be filled without impact on FC. Sales commissions will be reduced by 1/3. Determine if they should accept special order or not.

Reference no: EM13583941

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