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Rothery Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing...

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Accounting

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Rothery Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18,000 medals each month; current monthly production is 17, 100 medals. The company normally charges $88 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $495, 900 Direct labor $324, 900 Selling and administrative $30, 780 Fixed costs: Manufacturing $345, 420 Selling and administrative $164, 160 The company has just received a special one-time order for 600 medals at $73 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Required: Should the company accept this special order? Why

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