Anglen CoManufactures and Sells Trophies for Winners of Athletic and Other

question 28

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:

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it in short-term memory or to encode it into long-term memory.

Long-Term Memory

The phase of the memory process responsible for the storage of information over extended periods, potentially lasting from days to a lifetime.

Long-Term Memory

A type of memory capable of storing information for extended periods, often throughout a person's life.

Short-Term Memory

Short-term memory is the capacity for holding a small amount of information in an active, readily available state for a short period of time.