Jerston Company has an annual plant capacity of 3000 units. Data concerning this product are...
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Jerston Company has an annual plant capacity of 3000 units. Data concerning this product are given below: 2,500 units Annual sales at regular selling prices Manufacturing cost: Variable Fixed (annual) Selling and Admin Expenses Variable Fixed (annual) $20 $75,000 $6 per unit $15,000 The company has received a special order for 500 units at a selling price of $45 each. Regular Sales would not be affected and the sales commission on the 500 units would be reduced by one-third. This special order would have no impact on total fixed costs. Required: Determine whether the company should accept the special order. Show all computations
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