Manufacturer has planned his level of operation at 50% of his plant capacity of 30,000...

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Accounting

Manufacturer has planned his level of operation at 50% of his plant capacity of 30,000 units. His expenses are estimated as follows, if 50% of the capacity is used:
Direct material Rs 8280
Direct wages Rs 11160
Variable and other expenses Rs 3960
Total fixed cost Rs 6000
The expected selling price is Rs 2 per unit. Recently he got query for bulk order, interested in purchasing 6000 units at Rs 1.45 per unit.
Should the manufacturer accept the order?
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