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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
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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