Andrews Co manufactures and sells workbenches to wholesalers. It has a production capacity of 2,000 units per month.Edson Products Ltd, a new customer, has just requested a special order of 200 units and will pay price of $190 per unit.At present, the company is producing and selling 2,000 units per month at a selling price of $280 each. For these regular sales, the cost per unit is comprised of:

Variable Production Cost................$100

Fixed manufacturing overhead ...85(based on 2,000 units per month)

Variable Selling Expenses...............19

If the special order is accepted, there would be an additional transportation cost per unit of $14 because the customer operates in another province.

1.Should the company accept the special order?Show supporting calculations

2.At what selling price per unit on the special order would the company be indifferent between accepting and rejecting the order?

Andrews Co manufactures and sells workbenches to wholesalers. It has a production capacity of 2,000 units per month. Edson Products Ltd. a new customer. hasjust requested a special order of 200 units and will pay price of $190 per unit. At present. the company is producing and selling 2.000 units per month at a selling price of $280 each. For these regular sales. the cost newnd is comprised of. Variable Production Cost................ $100 Fixed manufacturing overhead 85 (based on 2,000 units per month] Variable Selling Expenses............... 19 If the special order is accepted. there would be an additional transportation cost per unit of $14 because the customer operates in another province. Required: 1. Should the company accept the special order? Show supporting calculations (4 marks] 2. At what selling price per unit on the special order would the company be indifferent between accepting and rejecting the order? {1 mark)