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Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 12,000 medals each month; current monthly production is 9,600 medals. The company normally charges $99 per medal. Cost data for the current level of production are shown below:
The company has just received a special one-time order for 500 medals at $89 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost.
Required:
Should the company accept this special order? Why?
45-degree Angle
An angle that measures 45 degrees, often associated with creating right triangles or the concept of diagonal measurement.
Semi-Fowler's Position
A position where a person lies on their back with the head and torso raised between 15 to 45 degrees, often used in medical contexts to aid breathing or digestion.
Abdominal Muscles
A group of muscles in the abdomen area, including the rectus abdominis, obliques, and transverse abdominis, important for posture and core strength.
Knees Bent
A position of the knee joints where they are not fully extended or straight, often used to refer to exercises or physical state.
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