Special Order

Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for $2009$ is as follows:

TOBITZU TV

Budgeted Income Statement

For the Year $2009$

Additional Information

excess capacity to fill the order. The company's sales manager argues for rejecting the order because $"$we are not in the business of paying $$32$ to make a product to sell for $$29."$

Do you think the company should accept the special order?

Compute the contribution per unit and total contribution for the special order.

Contribution per unit. Note: Round answer to two decimal places.

$$26$

Total contribution

$ $42,000$