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Kneller Corporation manufactures and sells medals for winners of athletic and other events. Its ...

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Kneller Corporation manufactures and sells medals for winners of athletic and other events. Its ...

Kneller Corporation manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18,000 medals each month; current monthly production is 10,000 medals. The company normally charges $109 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials	$ 528,400
Direct labor	$ 169,100
Selling and administrative	$ 27,400
Fixed costs:
Manufacturing	$ 158,100
Selling and administrative	$ 86,500

The company has just received a special one-time order for 500 medals at $94 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.

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Should the company accept this special order?

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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This helped my grade so much Perfect

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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