A. Should the order be accepted?

B. What qualitative factors should Chavez consider before making this decision?

2. Chavez Co. request for a special order o unit-related cost to produce a produces and sells duffel bags that are priced at $60 each. Chaves has received a f 500 duffel bags at a reduced price of $48 each. The current bag is $32 (direct material, $20; direct labor, $8; and unit- related overhead, $4). Fixed overhead of $350,000 consists of manufacturing overhead selling and administrative overhead. Chavez has the capacity to produce the special order; however, one additional production run will be required costing $2,000. a. Should the order be accepted? Why or why not. b. What qualitative factors should Chavez consider before making this decision