Question
Eltons Electronics is a wholesale distributer for TVs and other electronics and appliances. The selling price of TV Model 83G7 is $799. The following standard
Eltons Electronics is a wholesale distributer for TVs and other electronics and appliances. The selling price of TV Model 83G7 is $799. The following standard cost data per Model 83G7 includes $300 direct material, $30 direct labor and $200 manufacturing overhead (75% variable, 25% fixed). Elton has received a special order for 200 Model 83G7s at a price of $450 each. The only additional cost of accepting the special order is a sales commission of $9 per unit. The special order is to a retail store that will not be in competition with any other Elton customers. Ignoring qualitative factors, should Elton accept the special order? Show your calculations to document your answer.
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