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4. James Tech produces wall mounts for flat panel televisions. The forecasted income statement based on 100,000 units is as follows: JAMES TECH Budgeted Income

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4. James Tech produces wall mounts for flat panel televisions. The forecasted income statement based on 100,000 units is as follows: JAMES TECH Budgeted Income Statement For the Year 2018 Sales ($45 per unit) Cost of Production ($37 per unit) Gross Profit Selling Expenses (S4 per unit) Net Income $4,500,000 (3.700,000) 800,000 (400.000 $ 400,000 JAMES TECH received a special order from a hospital supply company offering to buy 12,000 wall mounts for $30 each. There is currently excess capacity to fill the order. The company's sales manager argues for rejecting the order because we are not in the business of paying $37 to make a product to sell for $30." Of the production costs and selling expenses, $800,000 and $100,000, respectively, are fixed. REQUIRED: DO YOU THINK THE COMPANY SHOULD ACCEPT THE SPECIAL ORDER? JUSTIFY YOUR

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