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accounting and finance LEDZEP Company has produced and sold 40,000 footballs in 2021 and is committed under contract to produce another 40,000 footballs in 2022

accounting and finance
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LEDZEP Company has produced and sold 40,000 footballs in 2021 and is committed under contract to produce another 40,000 footballs in 2022 for existing customers. The company has maximum factory capacity to produce 55,000 footballs. The folloying unit information pertains to 2021 production and will remain the same for 2022 based on production of 40,000 footballs: If production exceeds maximum factory capacity, LEDZEP company will have to rent additional factory space at a locked in cost of $70,000 for the year. The company has received an offer from a new potential customer, the National Football League (NFL), to buy 20,000 footballs during 2022 at a requested selling price of $42 per football and the NFL will not agree to a quantity less than this. If this order is accepted, an additional cost of \$1.60 per football will be incurred to brand the NFL logo onto each football. As well, this order will require special packaging which will cost $2.00 more per unit in addition to the regular necessary packaging. To accommodate the required logo stamping and special packaging requirements relating to the order, a temporary contract employee must be hired at a cost of $500 per day. It should take 5 days to complete the order. Required: 1.) Should the special order be accepted? Clearly state your decision and support your answer by providing the appropriate incremental analysis, and showing the dollar impact on Net Income. 2.) Provide a qualitative factor that should also be considered by management in making this decision? Explain why you think this should be considered

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