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Special Order Decision 3. Integrated Masters Inc. is currently operating at 50% capacity and manufacturing 50,000 units of a patented electronic component. The cost structure
Special Order Decision 3. Integrated Masters Inc. is currently operating at 50% capacity and manufacturing 50,000 units of a patented electronic component. The cost structure of the component is as follows: Raw Materials Direct Labor Variable Overhead Fixed Overhead S1.50 per unit S1.50 per unit $2.00 per unit S100,000 per year An Italian firm has offered to purchase 30,000 units at a price of $6 per unit. The normal selling price per unit is $8. This special order will not impact any of Integrated Master's current business. The company has computed its cost per unit as $7 so it is reluctant to accept this offer Should Integrated Masters accept this Special Order? Show the calculation that helps you develop your
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