Managerial Accounting

Zuzuki's production information of thermal flasks are a No. of Thermal Flasks (Per Month)

Full Production Capacity2,000, Current Production Capacity1,800. Each thermal flask is usually sold for $75 and the manufacturing costs are Direct material (per flask)8, Direct labour (per flask)5, Variable manufacturing overheads (per flask)3, Fixed manufacturing overheads2,200. In July 2016, Zuzuki received a special order of 300 flasks from a customer. The customer would pay $70 for each flask. Each flask is required to have a logo which costs an additional $2 per flask.Please take note that the customer does not accept any partial delivery. Calculate the total incremental profit/loss on the special order and state whether itshould be accepted. Show your workings clearly.