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Zentech Phone Gear Inc. produces high quality, durable protective cases for a variety of cellular phones. The company just received a special order to produce
Zentech Phone Gear Inc. produces high quality, durable protective cases for a variety of cellular phones. The company just received a special order to produce 450 units of a modified case for a specific phone model. The unit cost for the regular case is $33 ( $24 in total for variable costs and $9 for allocated fixed manufacturing overhead that is common to the company). A regular case is priced at $48/ unit. Extra costs for the modified case would be as follows: - Extra paint and plastic required for the modified case costs $3 per unit. - Adjustments to the design of the modified case costs $2,385 (a one-time cost). The price charged for a modified case is $52/ /unit. For each modified case produced and sold, the production and sale of a regular case must be given up. (i.e. Zentech Phone Gear is currently operating at full capacity). Should the company accept the order for the modified cases? Do not enter dollar signs or commas in the input boxes. Round Fixed Cost per Unit and Total Relevant Cost to 2 decimal places. Foregone Contribution Margin per Unit: \$ Variable Cost per Unit: : Fixed Cost per Unit: $ Total Relevant Costs: $ Accept or Reject
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