Question 1

R&W Manufacturing Company produces men?s hiker shorts. The selling price of the shorts is $37. The following standard cost data per unit includes $6.86direct material, $3.81direct labor and $11.68manufacturing overhead (50% variable, 50% fixed). R&W has received a special order for210at a price of $19.41each. The only additional cost of accepting the special order is a sales commission of $0.97per unit.R&W has ample capacity to produce the special order without interrupting regular production.Ignoring qualitative factors, should R&W accept the special order?

(Round answer to 2 decimal places, e.g. 158.64. Enter loss using either a negative sign preceding the number e.g. -158.64 or parentheses e.g. (158.64).)