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$3 each Question 1 Listik Company produces tennis rackets which it normally sells to retailers for Total cost of manufacturing 4,000 units is as follows:
$3 each Question 1 Listik Company produces tennis rackets which it normally sells to retailers for Total cost of manufacturing 4,000 units is as follows: Materials $4.800 Labor 2,400 Variable overhead 480 Fixed overhead 8,000 Total $15.680 Listik also incurs 5% sales commission on each racket sold. Acompany offers Listik $2.40 per racket for 800 rackets Allas would sell the rackets under its own brand name in foreign markets not yet served by Listik. If Listik accepts the offer, it will incur a one-time fixed cost of $10,000 due to the rental of an imprinting machine. No sales commission will result from the special order. Instructions 1 Prepare an incremental analysis for the special order. 2 Should Listik accept the special order? Why or why not? NI Increase Reject Accept /Decrease
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