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Big Sky Farms sells gift baskets containing a variety of fruits and nuts for $30...

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Accounting

Big Sky Farms sells gift baskets containing a variety of fruits and nuts for $30 each. Tanya Williams contacted Big Sky Farms to see if they would be willing to provide 340 gift baskets for a special price of $25 per basket. Big Sky Farms has the capacity to make 1,450 gift baskets and is presently working on 650 of them. Big Sky Farms estimates the cost of a gift basket to include unit-level materials, $10; unit-level labor, $8; and an allocated portion of facility-level overhead, $15.
Required:
Calculate the contribution to profit from the special order. Should Big Sky Farms accept or reject the special order to sell 340 gift baskets for $25 each?
\table[[Contribution to profit,],[Should Big Sky Farms accept or reject the special order?,]]
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