Dauphin Ltd has provided you with the following information for the single product it produces:...
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Dauphin Ltd has provided you with the following information for the single product it produces: Per Unit $12.00 $8.00 Direct materials Direct labour Variable overhead Variable selling expenses Fixed overhead $6.00 $5.00 $3.00 The fixed overhead of $3.00 per unit is based on expected production of 20,000 units. If more than 20,000 units were produced, Dauphin would incur an additional $100,000 of fixed overhead costs. Dauphin's fixed selling and administrative expenses total $40,000, regardless of the number of units sold. Dauphin's income tax rate is 40%. Dauphin expects to sell 17,000 units at $40 per unit. It has received a special order request for 9,000 units at $35 per unit. On the special order, variable selling expenses would only be $1.00 per unit. All other costs will remain unchanged. Required: a) Should Dauphin accept this order? Explain fully b) What are some qualitative factors that management needs to consider when deciding to accept or reject this order
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