Flower CoManufactures and Sells Medals for Winners of Athletic and Other

question 82

Essay

Flower Co.manufactures and sells medals for winners of athletic and other events.Its manufacturing plant has the capacity to produce 18,000 medals each month;current monthly production is 17,100 medals.The company normally charges $88 per medal.Cost data for the current level of production are shown below:
$\begin{array}{l}\begin{array}{|l|r|}\hline\text { Variable costs: }\\\hline \text { Direct materials } & \$ 495,900 \\\hline \text { Direct labor } & \$ 324,900 \\\hline \text { Selling and administrative } & \$ 30,780 \\\hline \text { Fixed costs: } & \\\hline \text { Manufacturing } & \$ 345,420 \\\hline \text { Selling and administrative } & \$ 164,160 \\\hline\end{array}\end{array}$

The company has just received a special one-time order for 600 medals at $73 each.For this particular order,no variable selling and administrative costs would be incurred.This order would also have no effect on fixed costs.Required:
Should the company accept this special order? Why? (CMA adapted)

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Definitions:

Authentic Leadership Outcomes

describe the results or impacts that stem from the practice of authentic leadership, including increased trust, engagement, and performance among followers.

Prescribed Leadership Behaviors

Expected or recommended actions and attitudes designated by theories or models for leaders to accomplish organizational goals.

Research Data

Information collected systematically for the purpose of analysis and interpretation in order to generate new knowledge or validate existing theories.

Servant Leadership

A leadership philosophy that focuses on serving others first, with leaders prioritizing the needs of their team members and organizations before their own.