Anglen Company Manufactures and Sells Trophies for Winners of Athletic

question 378

Essay

Anglen Company 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 14,400 trophies. The company normally charges $103 per trophy. Cost data for the current level of production are shown below:
The company has just received a special one-time order for 900 trophies at $48 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?

---

Definitions:

Heritability

The proportion of variation among individuals in a population that can be attributed to genetic variations.

Percent

A part-per-hundred ratio, a unit of measurement used to express how large one quantity is relative to another quantity.

Major Depressive Disorder

A mental health condition marked by persistent feelings of sadness, emptiness, or hopelessness, significantly affecting daily functioning.

Nonsuicidal Self-Injury

The deliberate, direct injuring of body tissue without suicidal intent, often as a means to manage distressing feelings or experiences.