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Should ryan accept the special order

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Reference no: EM132526937

Ryan Company manufactures a single product, Blarney. In a period when 50,000 units of Blarney are produced and sold, the following amounts are budgeted:

Revenue $600,000

Direct materials $200,000

Direct Labor $100,000

Variable manufacturing $50,000

Fixed manufacturing $150,000

Net Income $100,000

Question 1: Burke offers to pay Ryan $10.75 per unit for an order of 8,000 units. Ryan has the capacity to fill the order and accepting the order will not affect any other orders. Should Ryan accept this special order?

Reference no: EM132526937

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