Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing...

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Accounting

Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to
produce 19,300 trophies each month; current monthly production is 15,960.00 trophies. The company normally charges $109.50 per
trophy. Cost data for the current level of production are shown below:
Variable costs:
Direct materials $485,300
Direct labor $360,300
Selling and administrative $21,040
Fixed costs:
Manufacturing $411,790
Selling and administrative ,$77,480
The company has just received a special one-time order for 965 trophies at $50.60 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?
Answer is not complete.
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