=+A12-2 Decision on accepting additional business A manager ofBack Tee Sporting Goods Company is considering accepting an

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=+A12-2 Decision on accepting additional business A manager ofBack Tee Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 20,000 dozen golf balls at a price of

$20.00 per dozen. The variable cost to manufacture a dozen golf balls is $17.00 per dozen. The full cost is $23.00 per dozen. Back Tee has a normal selling price of $28.00 per dozen. Back Tee’s plant has just enough excess capacity on the second shift to make the overseas order.

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