Special Order The Vaughan Company makes widgets. The company has the capacity to produce 40,000 widgets per year. Per unit costs to produce and sell one widget at that activity level is: DM DL VFOH FFOH V S&A F S&A 20.00 10.0042 5.00 7.00 8.00 s6 $ 52.00 The regular selling price of a widget is $60. A special order has been received at Vaugh Company from Ellis Company to purchase 8,000widgets next yearat 15% off the regular selling price. If the special order were accepted, the variable selling expenses would be reduced by 25% However, Vaughan would have to purchase a special machine to engrave the Ellis name on each unit in this order. The machine would cost $12,000 and it would have no use after the order is filled The total fixed costs, both manufacturing and selling, 30,000 to 40,000 widgets per year. Assume DL is variable. Also assume that current sales of widgets to regular customers next year expect to be 30,000. Should Vaughan Company accept this special order? are constant within the relevant range of Sales DA NFOA 2. 208000 WO100 maric 2,000 o, 000