The Following Information Relates to a One-Time Special Order from a Flood

question 110

Essay

The following information relates to a one-time special order from a flood relief organization for 200 of its book bags at $8.50.Current manufacturing costs are as follows. Fixed manufacturing overhead is based on capacity of 4,500 units per year.Normal sales is 4,000 book bags per year.Only $0.46 of the selling costs will be incurred for this special order.What are the relevant costs regarding this special order? Pose one nonfinancial consideration regarding the acceptance or rejection of this special offer.

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