Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing...
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Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce trophies each month; current monthly production is trophies. The company normally charges $ per trophy. Cost data for the current level of production are shown below: Variable costs: Direct materials $ Direct labor $ Selling and administrative $ Fixed costs: Manufacturing $ Selling and administrative $ The company has just received a special onetime order for trophies at $ 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. 
Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to
produce trophies each month; current monthly production is trophies. The company normally charges $ per
trophy. Cost data for the current level of production are shown below:
Variable costs:
Direct materials $
Direct labor $
Selling and administrative $
Fixed costs:
Manufacturing $
Selling and administrative $
The company has just received a special onetime order for trophies at $ 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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