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The Cozzy Company manufactures slippers and normally sells them at $10.00 a pair in the...

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Accounting

The Cozzy Company manufactures slippers and normally sells them at $10.00 a pair in the Ontario market. Variable manufacturing cost is $5.75 a pair, variable selling costs are $0.26 per pair and allocated fixed manufacturing cost is $1.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 25,000 pairs of slippers for a Vancouver distributer at $7.50 a pair. Cozy will not incur any of the variable selling costs as a result of the special order, but will be responsible for shipping the batch of slippers at a cost of $1,200. Should they accept this special order? Base your recommendation on both quantitative and possible qualitative considerations

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