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Anson, Inc. sells a single product and reports the following results from sales of 1 0 0 , 0 0 0 units. table [
Anson, Inc. sells a single product and reports the following results from sales of units.
tableANSON INC.,Sales OF ITS PRODUCTCosts and Expenses:,Direct Materials,Direct Labor,Variable Manufacturing Overhead,Fixed Manufacturing Overhead,Variable Administrative Expenses,Fixed Administrative Expenses,Total Costs and Expenses,Operating Income,$
A foreign company wants to purchase units. However, they are willing to pay only $ per unit for this one time order. They also agree to pay all freight costs. To fill the order, Anson will incur normal production costs. Total fixed overhead will have to be increased by $ to pay for equipment rentals and insurance. No additional administrative costs variable or fixed will be incurred in association with this special order.
REQUIRED: Using the attached answer sheet, indicate if Anson should accept the order if it does not affect regular sales. Provide an analysis to support your answer.
Using the attached answer sheet, assume that Anson can accept the special order only by giving up units of its normal sales. Should Anson accept the special order under these circumstances? Provide an analysis to support your answer.
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