Manning Co. manufactures and sells trophies for winners of athletic and other

Manning
Co. manufactures and sells trophies for winners of athletic and other events.
Its manufacturing plant has the capacity to produce 18,000 trophies each month;
current monthly production is 15,300 trophies. The company normally charges
$141 per trophy. Cost data for the current level of production are shown below.

Variable
Costs
Direct
Materials $948,600
Direct
Labor $290,700
Selling
and Administrative $41,300

Fixed
Costs
Manufacturing $579,870
Selling
and Administrative $134,640

The company has just received a special one-time order for 900 trophies at $73
each. For this particular order, no variable selling and administrative costs
would be incurred. This order would also have no effect on fixed costs.

Required:
Should the company accept this special order? Why?

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