Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 19,400 trophies each month; current monthly production is 16,080.00 trophies. The company normally charges $110.00 per trophy. Cost data for the current level of production are shown below:
Variable costs:
Direct materials
$ 490,300
Direct labor
$ 363,300
Selling and administrative
$ 21,440
Fixed costs:
Manufacturing
$ 412,340
Selling and administrative
$ 77,680
The company has just received a special one-time order for 970 trophies at $50.80 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost.
Required:
Should the company accept this special order? Why?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
