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Esther's End Tables gets a special order to make 10,000 end tables, which would be sold for $75 per table. The company has enough excess
Esther's End Tables gets a special order to make 10,000 end tables, which would be sold for $75 per table. The company has enough excess capacity to take the special order, so they won't have to cancel any of their regular production to manufacture the special order. They usually sell each end table for $100. Cost information is as follows: DIRECT MATERIALS PER TABLE DIRECT LABOR PER TABLE: VARIABLE OVERHEAD PER TABLE $11.00 FIXED OVERHEAD PER TABLE: $18.00 $42.00 $12.00 All fixed overhead is unavoidable. 1. 2. Should they accept the special order? Show your work. If they were operating at full capacity and would have to cancel some production to accept the special order, would your answer be different? Why
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