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Elizabeth could not stop thinking about a phone call she had received earlier. A potential...

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Accounting

Elizabeth could not stop thinking about a phone call she had received earlier. A potential customer had the nerve to call and ask if her
company could give him a special deal on its main product, a bicycle helmet. Since Elizabeth knew the product cost of the helmet is $14,
she quickly said no to his offer of $10.00 per unit. After thinking about it all day, though, she is now wondering if she did the right thing.
The helmet production line has enough capacity available to produce the 150 helmets the customer requested. The detailed per unit
product costs include DM of $3, DL of $3, variable MOH of $3, and fixed MOH of $5.
According to this information, should Elizabeth have accepted the special order?
Additional contribution margin for company $
Elizabeth
have accepted the special order.
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