29. Davidson Company produces kitchen cabinets. The costs are as follows: DM DL Selling Expenses Fixed MOH Variable MOH $100/unit $ 50/unit $ 20/unit $400,000 $ 20/unit Watkins has offered Davidson $195 p/cabinet for a special order of 1000 cabinets. Selling expenses would be only $5 p/cabinet for this order and all other costs remain unchanged. Davidson has the available capacity to complete this order. Should Davidson accept the special order? a. No, accepting the special order would be a financial disadvantage of ($380,000) b. No, accepting the special order would a financial disadvantage of ($395,000) Yes, accepting the special order would be a financial advantage of $20,000 d. Yes, accepting the special order would be a financial advantage of $5,000 C.

9. Davidson Company produces kitchen cabinets. The costs are as follows: Watkins has offered Davidson $195p/ cabinet for a special order of 1000 cabinets. Selling expenses would be only $5p/ cabinet for this order and all other costs remain unchanged. Davidson has the available capacity to complete this order. Should Davidson accept the special order? a. No, accepting the special order would be a financial disadvantage of ($380,000) b. No, accepting the special order would a financial disadvantage of ($395,000) c. Yes, accepting the special order would be a financial advantage of $20,000 d. Yes, accepting the special order would be a financial advantage of $5,000