Special Order SURF GEAR Surf Gear manufactures beach towels and the plant has a monthly production capacity of 48,000 towels but currently, based on existing business, the company is producing 30,000 towels each month. All of its current production is sold to retail department stores. Azelia, a luxury hotel chain, has offered to buy 5,000 towels from Surf Gear in October at a price of $11 per towel as a one-off transaction due to an emergency situation with its regular supplier. Facts and Analyses: The cost factors and relationships in the month of October are not expected to change from those in previous months and the forecast financial results are shown in Table A below. The current unit cost to produce and sell towels is $19.00 per towel. Unit costs are determined based on the production capacity of 48,000 towels per month. The company does not expect to incur any marketing costs if it accepts the special order Sales of the 5,000 towels to the hotel-chain will not affect existing pricing arrangements with the retail stores Should the order be accepted and if so at what price? Special Order SURF GEAR Surf Gear manufactures beach towels and the plant has a monthly production capacity of 48,000 towels but currently, based on existing business, the company is producing 30,000 towels each month. All of its current production is sold to retail department stores. Azelia, a luxury hotel chain, has offered to buy 5,000 towels from Surf Gear in October at a price of $11 per towel as a one-off transaction due to an emergency situation with its regular supplier. Facts and Analyses: The cost factors and relationships in the month of October are not expected to change from those in previous months and the forecast financial results are shown in Table A below. The current unit cost to produce and sell towels is $19.00 per towel. Unit costs are determined based on the production capacity of 48,000 towels per month. The company does not expect to incur any marketing costs if it accepts the special order Sales of the 5,000 towels to the hotel-chain will not affect existing pricing arrangements with the retail stores Should the order be accepted and if so at what price