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10 Munoz Company manufactures a personal computer designed for use in schools and markets it under its own label. Munoz has the capacity to
10 Munoz Company manufactures a personal computer designed for use in schools and markets it under its own label. Munoz has the capacity to produce 35,000 units a year but is currently producing and selling only 20,000 units a year. The computer's normal selling price is $1,640 per unit with no volume discounts. The unit-level costs of the computer's production are $450 for direct materials, $100 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Munoz during the year are expected to be $2,160,000 and $806,000, respectively. Assume that Munoz receives a special order to produce and sell 3,140 computers at $1,250 each. Required Calculate the contribution to profit from the special order. Should Munoz accept or reject the special order? Contribution to profit Should Munoz accept or reject the special order? Accept
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