SE5??

Dental Associates, Inc., is currently operating at less than capacity. The company thinks it could cut costs by outsourcing dental cleaning to an independent dental hygienist for $50 per cleaning. Currently, a hygienist is employed for $30 an hour. A dental cleaning usually takes one hour to perform and consumes $10 of dental supplies, &8 or variable overhead, and $16 of fixed overhead. Should Dental Associates continue to perform dental cleanings, or should it begin to outsource them? Hadley Company has received a special order request for Product R3P at a selling price of $20 per unit. This order is over and above normal production, and budgeted production and sales targets for the year have already been exceeded. Capacity exists to satisfy the special order. No selling costs will be incurred in connection with this order. Unit costs to manufacture and sell Product R3P are as follows: direct materials, $7.60: direct labor, $3.75: variable overhead, $9.25: fixed overhead, $4.85: variable selling costs, $2.75: and fixed general and administrative costs, $6.75. Should Hadley accept the order