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es Baird Company manufactures a personal computer designed for use in schools and markets it under its own label. Baird has the capacity to produce
es Baird Company manufactures a personal computer designed for use in schools and markets it under its own label. Baird has the capacity to produce 45,000 units a year but is currently producing and selling only 18,000 units a year. The computer's normal selling price is $1,660 per unit with no volume discounts. The unit-level costs of the computer's production are $500 for direct materials, $230 for direct labor, and $150 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Baird during the year are expected to be $2,180,000 and $801,000, respectively. Assume that Baird receives a special order to produce and sell 3,200 computers at $1,220 each. Required Calculate the contribution to profit from the special order. Should Baird accept or reject the special order? Contribution to profit Should Baird accept or reject the special order
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