Zachary Company manufactures a personal computer designed for use in schools and markets it under...
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Zachary Company manufactures a personal computer designed for use in schools and markets it under its own label. Zachary has the capacity to produce 34,000 units a year but is currently producing and selling only 10,000 units a year. The computer's normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer's production are $480 for direct materials, $290 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product-and facility-level costs incurred by Zachary during the year are expected to be $2,110,000 and $804,000, respectively. Assume that Zachary receives a special order to produce and sell 3,000 computers at $1,230 each. Required Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order
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