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Problem 3 (10 points). Anson, Inc. sells a single product and reports the following results from sales of 100,000 units. ANSON INC. RESULTS FROM THE

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Problem 3 (10 points). Anson, Inc. sells a single product and reports the following results from sales of 100,000 units. ANSON INC. RESULTS FROM THE SALES OF UNITS (100,000) OF ITS PRODUCT Sales S 4,500,000 Costs and Expenses: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Administrative Expenses Fixed Administrative Expenses 1,600,000 900,000 300,000 810,000 450,000 400,000 4,460,000 40,000 Total Costs and Expenses Operating Income A foreign company wants to purchase 15,000 units. However, they are willing to pay only $36 per unit for this one time order. They also agree to pay all freight costs. To fill the order, Anson will incur normal production costs. Total fixed overhead will have to be increased by $60,000 to pay for equipment rentals and insurance. No additional administrative costs (variable or fixed) will be incurred in association with this special order REQUIRED: ( Should Anson accept the order if it does not affect regular sales? Provide an analysis to support your answer. Assume that Anson can accept the special order only by giving up 5,000 units of its normal sales. Should Anson accept the special order under these circumstances? Provide an analysis to support your answer (2)

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