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Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a shightly customized vertion
Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a shightly customized vertion of one of its products for $42. The normal selling price of this product is 548 per unit it can fulfil the order using existing manufacturing capacity. The company eccounting systom estimotes the following unit product cost for this product The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overthead is red and unaffected by the volume of units produced within the relevant range. Assuming that this decision will have no effect on sales to other ustomers, what is the financial advantoge (disadvantage) of accepting the special order
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