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Current Attempt in Progress Maxim Company produces a designer wall clock which has a unit variable cost of $15 and a unit fixed cost of
Current Attempt in Progress Maxim Company produces a designer wall clock which has a unit variable cost of $15 and a unit fixed cost of $9. The company currently sells its products to customers at a unit selling price of $50. A regional company has offered to purchase 500 of Maxim's clocks at a unit selling price of $24 but would like to have the clocks customized with its company logo. The customization will cost an additional $5 per clock. Due to the current economic situation, Maxim has sufficient excess capacity to produce and sell the specialorder units without incurring additional fixed costs. Should this Maxim accept or reject this special order and why? Reject because the total per unit cost to produce the special-order exceeds the special-order unit selling price. Accept because the differential revenue exceeds the differential costs. Reject because the special-order price is the same as the total unit cost to produce. Reject because the special-order price is less than the normal unit selling price
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