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Torque Master Tools produced and sold 47,630 Nematic Socket Torque Wrenches and is operating at...

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Accounting

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Torque Master Tools produced and sold 47,630 Nematic Socket Torque Wrenches and is operating at only 40% of plant capacity. Unit information about its product is as follows: The company received a proposal from a company to buy 8,000 Nematic Socket Torque Wrenches for $89 each. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Torque Master Tools, Inc. Andy Granatelli, is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. Required: 1. Prepare an incremental analysis of this proposal and indicate the effect the acceptance of this order would have on the company's income. 2. What qualitative factors should Mr. Granatelli take into consideration

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