Answer Happy

م والتكنولوجيا Special Order: Nowlan Co. manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 11,000 trophies each month; current monthly production is 8,800 trophies. The company normally charges $87 per trophy. Cost data for the current level of production are shown below: Variable costs: Direct materials $299,200 Direct labor. $202,400 Selling and administrative... $21,120 Fixed costs: Manufacturing $179,520 Selling and administrative... $58,960 The company has just received a special one-time order for 500 trophies at $50 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?