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3. Wilco Inc. manufacturers pocket protectors used in accounting firms around the world. Unit cost data (10,000 units produced) related to the production of

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3. Wilco Inc. manufacturers pocket protectors used in accounting firms around the world. Unit cost data (10,000 units produced) related to the production of each pocket protector is as follows: Direct Materials Direct Labor Variable MOH Fixed MOH Variable Admin Costs Fixed Admin Costs Total $2 $1.5 $1 $3 $1.5 $1 $10 Seminole Corp has approached Wilco with an offer for a special order of 1,000 units for which they are willing to pay $7 per unit. Wilco would not incur any additional fixed costs and variable administrative costs would be reduced by 33%. Should Wilco accept the order and what is the effect on Wilco's income if they accept it? Relevant Manuf. Cost (Special Order) DM DL Variable MOH Variable Admin Total

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