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3. Special Order Decision Knollwood Industries Inc. is currently operating at 50% capacity and manufacturing 100,000 units of a patented electronic component. The cost structure
3. Special Order Decision Knollwood Industries Inc. is currently operating at 50% capacity and manufacturing 100,000 units of a patented electronic component. The cost structure of the component is as follows: Unit Material Cost $2.50 per unit Unit Labor Cost $2.00 per unit $1,000 per batch Batch Costs (10,000 per batch) Product Costs (salaries) $100,000 per year A potential new customer has offered to purchase 70,000 units at a price of $7 per unit. The normal selling price per unit is $10. This special order will not impact any of Knollwood's current business. Should Knollwood accept this Special Order? Show the calculation that helps you develop your
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