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Additional Information ( 1 ) Of the production costs and selling expenses, $ 8 0 0 , 0 0 0 and $ 1 0 0
Additional Information
Of the production costs and selling expenses, $ and $ respectively, are fixed. Tobitzu TV received a special order from a hospital supply company offering to buy
wall mounts for $ If it accepts the order, there will be no additional fixed selling expenses, and there is currently sufficient 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 $ to make a product to sell for $
Do you think the company should accept the special order?
Compute the contribution per unit and total contribution for the special order.
Contribution per unit. Note: Round answer to two decimal places.
Total contribution
$
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