Top Posters
Since Sunday
1
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
BigFella9503 BigFella9503
wrote...
Go to Answer
Posts: 150
Rep: 0 0
A year ago

Kneller Company manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 12,000 medals each month; current monthly production is 9,600 medals. The company normally charges $99 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials$ 480,000
Direct labor$ 153,600
Selling and administrative$ 24,960
Fixed costs:
Manufacturing$ 144,000
Selling and administrative$ 78,720

The company has just received a special one-time order for 500 medals at $89 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost.

Required:

Should the company accept this special order? Why?

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
Read 62 times
1 Reply
Replies
Answer verified by a subject expert
Marinaanderson0Marinaanderson0
wrote...
#1
Posts: 151
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

BigFella9503 Author
wrote...

A year ago
Correct Slight Smile TY
dearsophia21
wrote...

Yesterday
You make an excellent tutor!
Tabitha.davis
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1174 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 385
  
 227
  
 616
Your Opinion
What's your favorite coffee beverage?
Votes: 302
Previous poll results: Where do you get your textbooks?