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D G H Mason has received a special order for 2,000 units of its product at a special price of $245. The company currently sells
D G H Mason has received a special order for 2,000 units of its product at a special price of $245. The company currently sells 18,600 units of the product for $305 and has the following manufacturing costs: IN 3 Per Unit Direct materials $85 5 Direct labour 55 Variable manufacturing overhead 65 7 Fixed manufacturing overhead 40 8 Unit cost $245 9 10 Mason's capacity is 20,000 units. 11 12 Required: 13 Should Mason accept the order? (5 marks) 14 Note: You may not have to use all the green and blue highlighted cells 15 16 17 18 19 20 21 22 23 24 25 26 27 KI Sheet1 New I Required: Should Mason accept the order? (5 marks) Note: You may not have to use all the green and blue highlighted cells Decision: Reason
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