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Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Perez Company manufactures a personal computer designed for use in schools

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Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate special order decisions Perez Company manufactures a personal computer designed for use in schools and markets it under its own label. Perez has the capacity to produce 35,000 units a year but is currently producing and selling only 18,000 units a year. The computer's normal selling price is $1,670 per unit with no volume discounts. The unit-level costs of the computer's production are $560 for direct materials, $150 for direct labor, and $110 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Perez during the year are expected to be $2,170,000 and $801,000, respectively. Assume that Perez receives a special order to produce and sell 3,120 computers at $1.220 each Required Calculate the contribution to profit from the special order. Should Perez accept or reject the special order? Contribution to profit Should Perez accept or reject the special order

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