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PLEASE ANSWER QUICKLY Questions 2 Psy Company produces a single product, Gangnam Golf Carts. The cost of producing and selling a single unit of this

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PLEASE ANSWER QUICKLY

Questions 2 Psy Company produces a single product, Gangnam Golf Carts. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct materials $39.60 Direct labour 15.80 Variable manufacturing overhead 6.50 Fixed manufacturing overhead 17.20 Variable selling & administrative expense 1.80 6.70 Fixed selling & administrative expense The normal selling price of the product is $71.50 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price of $65.00 per unit. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.10 less per unit on this order than on normal sales. Required: Assuming there is ample idle capacity to produce the units required by the overseas customer, should the special order be accepted? Support your answer with a proper analysis

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