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Nardin Outfitters has a capacity to produce 21,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per
Nardin Outfitters has a capacity to produce 21,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,850 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 630 Fixed manufacturing costs 185 Variable selling and administrative costs 175 Fixed selling and administrative costs 145 Total costs $ 1,135 The company has received a special order for 2,400 tents at a price of $790 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $64 per tent. The special order would have
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