Homework Answers
Solution:
| Computation of contribution to profit from special order | |
| Particulars | Amount |
| Revenue from special order | $3,806,400.00 |
| Relevant costs: | |
| Direct materials | $1,840,800.00 |
| Direct labor | $655,200.00 |
| Variable overhead | $592,800.00 |
| Contribution to profit from special order | $717,600.00 |
Thornton should accept the special order.
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