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Ole Kirk Christiansen is a carpenter. Ole makes custom coffee tables. A customer has requested two duplicate tables: one for the primary home and one
Ole Kirk Christiansen is a carpenter. Ole makes custom coffee tables. A customer has requested two duplicate tables: one for the primary home and one for a vacation home. The customer has offered $800 for both tables instead of $1,000 ($500 each) that Ole normally charges. The costs for one table is shown below. One Table Direct Materials $100 Direct Labor $200 Variable Overhead $50 Fixed Overhead $20 If Ole accepted this order, what would be the total cost for both tables? (3 points) How much profit will Ole generate for this special order? (3 Points) If Ole always required a 10% profit on all orders, should Ole accept this order? Why or why not? (4 points)
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