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The RF Company produces 18,000 caps a month, which is 73% of factory capacity. Variable manufacturing costs are $28.40 per unit. Fixed manufacturing costs are
The RF Company produces 18,000 caps a month, which is 73% of factory capacity. Variable manufacturing costs are $28.40 per unit. Fixed manufacturing costs are $50,000 per month. RF caps are usually sold for $50 apiece. The RF Company has just received a special order from Uniflo Imports to produce an extra 6,500 caps for $47.25. The RF Company will have package and ship the caps to Uniflo Imports. Packaging and shipping for each cap will cost $11.15. Should The RF Company accept the order?
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