1. Suppose a loyal customer requested to a special order to buy 100 units at $5.50 per unit. This is a one-time only order, the manufacturing company has the capacity to fill this order, and by filling the order no other regular order will go unfilled.

1. Would you fill this order if you were the manager? Why?
2. Is there an opportunity cost associated with this order? Explain.
3. What would be the per-unit profit or loss for filling this order?

Manufacturing Cost Direct materials Direct labor Indirect labor Indirect material Electricity Factory Insurance Other overhead Total Manufacturing Costs Unit Total Variable Fixed Cost Cost 0.75 $ 1.25 $ 0.20 $200 $600 $ 0.10$ 150 $250 $ 0.50 $ 220 $ 2.80 $ 1,420.00 Cost of 1000 Units Total Per Unit $ 750.00 $ 0.75 $ 1,250.00 $ 1.25 $ 400.00 $ 0.40 $600 $ 0.60 $ 250.00 $ 0.25 $250 $ 0.25 $ 720.00 $ 0.72 $ 4,220.00 $ 4.22 Galica Administrative and Selling Admin/Selling Expenses Total Costs 1562 $ 2.80 $ 2,982.00 1562 1.562 $ 5,782.00 $ 5.78