Biello Co. manufactures and sells medals
Variable costs:
Direct materials 969,000
Direct labor 270,750
Selling and administrative 27,075
Fixed Costs:
Manufacturing 350,550
Selling and administrative 89,775
The company has just received a special one-time order for 600 medals at $102 each. For this particular order, no variable selling and administrative costs would beincurred. This order would also have no effect on fixed costs.
Required:
Should the company accept this special order? Why?
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