AID for K A B E F G 1 Flextek Company has an annual plant capacity of 3,000 units. 2 Data concerning this product are given below: 3 4 Annual sales at regular selling prices 2500 units 5 Manfacturing costs 6 Variable 25 per unit Fixed (annual) $ 75,000 8 Selling and administrative expenses: 9 Variable (sales commissions) 5 per unit 10 Fixed (annual) $ 15,000 $ 12 The company has received a special order for 400 units at a selling price of $50 each. Regular sales 13 would not be affected and sales commission on the 400 units would be reduced by one-half. This 14 special order would have no impact on total fixed costs. 5 16 Required: 17 Determine whether the company should accept the special order. 18 SHOW YOUR WORK! 19