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QUESTIONS Lanner Company produces a single product. The costs of producing and selling a single unit of this product at the company's current activity level
QUESTIONS Lanner Company produces a single product. The costs of producing and selling a single unit of this product at the company's current activity level of 1.000 units per month $2.50 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 153.00 50.50 54.25 $6.50 $2.00 The normal selling price is $15 per unit. The company's production capacity is 10,000 units per month. The company has received a special order from Manor Ltd for 2,000 units at a price of $11.00 per unit. No additional selling or administrative expenses will be incurred if the order is accepted. Required: a. Should Lanner Company accept Manor Ltd's special order? Show all workings. Justify your conclusion. b. Briefly explain TWO qualitative factors that managers should consider when deciding whether to accept a special order. (. ase indicate which auestion you are answering for each
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