Take me to the text Bluejay Rollers Company produces pogo sticks. Each pogo stick has...
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Accounting
Take me to the text Bluejay Rollers Company produces pogo sticks. Each pogo stick has the following costs: Direct Materials $14.00 Direct Labor $5.00 Variable Manufacturing Overhead $5.00 Allocated Fixed Manufacturing Overhead $9.00 Unit Cost $33.00 Note: The fixed manufacturing overhead is common to the company. The production capacity is 355,000 units per year. However, Bluejay Rollers expects to produce only 202,000 units for the coming year. The company also has fixed selling costs of $588,000 per year and variable selling costs of 56 per unit sold. Each pogo stick normally sells for $31 each. Recently, a customer offered to buy 48,000 pogo sticks at a special price of $23 each. This order would not have any variable selling costs because no sales commissions are involved. Based on a quantitative analysis, should the company accept the special order? Do not enter dollar signs or commas in the input boxes. Use the negative sign for values that must be subtracted and negative values, Do not enter dollar signs or commas in the input boxes. Use the negative sign for values that must be subtracted and negative values. Total Revenues $ Total Direct Materials $ 14 Total Direct Labor $ 5 Total Variable Overhead $ 5 Incremental Operating Income $48000 The special order should be: Rejected
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