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Rothery Co

Question 125

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Rothery Co.manufactures and sells medals for winners of athletic and other events.Its manufacturing plant has the capacity to produce 18,000 medals each month;current monthly production is 17,100 medals.The company normally charges $88 per medal.Cost data for the current level of production are shown below: Rothery Co.manufactures and sells medals for winners of athletic and other events.Its manufacturing plant has the capacity to produce 18,000 medals each month;current monthly production is 17,100 medals.The company normally charges $88 per medal.Cost data for the current level of production are shown below: The company has just received a special one-time order for 600 medals 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? The company has just received a special one-time order for 600 medals 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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