Please solve M17-17

Il Relevant Costs and Benefits for Decision Making aditional Information (1) Of the production cos Soni LTD received a special o - $30. If it accepts the order ficient excess capacity to fi because we are not in the costs and selling expenses, $800,000 and $100,000, respectively, are fixed. (2) special order from a hospital supply company offering to buy 12,500 wall mounts the order, there will be no additional selling expenses, and there is currently suf- ity to fill the order. The company's sales manager argues for rejecting the order t in the business of paying $36 to make a product to sell for $30." Required Do you think the com mpany should accept the special order? Should the decision be based only on the Gehe sale, or are there other issues that Soni should consider? Explain. ofitability of the sale, or are there oth L01 -17. Sell or Process Further Bear Lake Boat Comi yards for $6,000. The com prior to sale at an additional cos Required Company manufactures sailboat hulls at a cost of $5,200 per unit. The hulls are sold to boat- 00 The company is evaluating the desirability of adding masts, sails, and rigging to the hulls jo at an additional cost of $1,500. The completed sailboats could then be sold for $7,000 each. mine whether the company should sell sailboat hulls or process them further into complete sail- boats. Assume sales volume will not be affected. 17.18. Special Order Great Oaks Farm grows organ Because the 's Farm grows organic vegetables and sells them to local restaurants after processing. The Ind in a-Rag, which is a mixture of organic green salad ingredients prepared unts for $25. It calculates the variable cost