b

Spectal order Speclal order For The Ages Inc, produces solid-oak umbrella stands. Each stand is handmade and hand finished using the finest materials available. The fis year) for the past three years. Based on this capacity of operations, the firm's costs per stand are as follows: All selling and administrative expenses incurred by the firm are fixed, The average selling price of stands is $230. Recently, a large retailer ap about supplying 7 special stands to give as gifts to CEOs of key suppliers. Wood estimates that the following per-unit costs would be incurre To accept the special order, the firm would have to sacrifice production of 48 regular units. a. Identify the total relevant cost that Wood should consider in deciding whether to accept the special order, 9 b. Assume the retalier offers to pay For The Ages a total of $9,120 for the 7 stands. How would accepting this offer affect For The Ages' preNote: Do not use a negative sign with vour answer. Accepting the offer would result in an is handmade and hand finished using the finest materials available. The firm has been operating at capacity ( 4,800 stands per 15, the firm's costs per stand are as follows: ked. The average selling price of stands is $230. Recently, a large retailer approached Bill Wood, the president of For the Ages, ppliers. Wood estimates that the following per-unit costs would be incurred to make the 7 stands: jetion of 48 regular units. ciding whether to accept the special order. $ for the 7 stands. How would accepting this offer affect For The Ages' pre-tax income