BC Company has idle capacity. They have been offered to roduce a special order for...
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Accounting
BC Company has idle capacity. They have been offered to roduce a special order for $300 that would normally sell for 450. The similar unit that sells for $450 has a variable cost o 225 and a fixed cost of $125 yielding a unit profit of $100. JOTE: they will have to rent a special machine in order to complete the order which will cost $90. There are no increases n fixed costs to take on this special project. Taking into consideration the cost of renting the machine, should they accept this special order? yes, take on the special order because profits increase $75 and there is idle capacity. no, don't take on the special order because it is $150 less than we would normally sell it for no, don't take on the special order because there is a $15 loss of profit. no, don't take on the special order because there is a $140 loss of profit. not enough information to make a decision
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