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A local campground recently made a special order offer; the campground would like to purchase...

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Accounting

A local campground recently made a special order offer; the campground would like to purchase 1,000 skillets branded with their logo. Forge Company is currently producing and selling 20,000 skillets; the company has the excess capacity to handle this special order. The campground has offered to pay $30 for each skillet. An accountant at Forge Company provides an estimate of the unit product cost as follows: Direct material $6.00, Direct labour (variable) $3.50, Variable manufacturing overhead $1.00, Fixed manufacturing overhead $4.00 with a total unit cost of $14.50. This special order would require an investment of $5,000 for the molds required for the custom logo brand. These molds would have no other purpose and would have no salvage value. The

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