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Exercise: Special Order KonnectCo manufactures flash drives and sells them for $20 Variable Costs per Unit Fixed Costs per Month Direct materials $3 Manufacturing overhead

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Exercise: Special Order KonnectCo manufactures flash drives and sells them for $20 Variable Costs per Unit Fixed Costs per Month Direct materials $3 Manufacturing overhead $20,000 Direct labor 4 Selling and administrative 8,000 Manufacturing overhead 2 Selling and administrative 1 . A customer offers to place a special, one-time order for 800 units at a reduced price of $16 per unit KonnectCo has production capacity of 5,000 units and normally produces 4,200. KonnectCo will save 25% of its variable sales and administrative costs as a result Question: Should KonnectCo accept the order? . 17

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