The Magnolia Company is considering taking individual orders and customizing them for customers. To finish the decoration, the company would have to pay additional materials costing an average of $8.00 per unit, additional labor of $6.00 per unit, and fixed costs would increase by $3,000. If the company estimates that it can sell 1200 decorations for $50.00 per unit each month. Magnolia Company sells decorations at a price of $30.00. The current profit margin is $10.00 per decoration.

REQUIRED: (SHOW ALL YOUR WORK)

Determine if the company should start taking the orders? Show the work.