Anglen CoManufactures and Sells Trophies for Winners of Athletic and Other

question 78

Essay

Anglen Co.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?

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Definitions:

Human Network

Refers to the complex web of social connections, interactions, and relationships that individuals form with each other.

Self-Managing Work Teams

Self-managing work teams are groups of employees tasked with managing themselves and their work process, including planning, scheduling, and executing tasks without direct supervision.

Participative Decision Making

A leadership and management approach where employees at all levels are involved in the problem-solving and decision-making processes, leading to more democratic and inclusive organizational practices.

Managerial Tasks

Responsibilities and activities undertaken by managers, such as planning, organizing, leading, and controlling to achieve organizational goals.