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Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 28,000
Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 28,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling price is $1,730 per unit with no volume discounts. The unit-level costs of the computer's production are $450 for direct materials, $250 for direct labor, and $190 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Thornton during the year are expected to be $2,240,000 and $808,000, respectively. Assume that Thornton receives a special order to produce and sell 3,020 computers at $1,220 each. 20 points Skloped Required Calculate the contribution to profit from the special order. Should Thornton accept or reject the special order? Contribution to profit Should Thornton accept or reject the special order
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