Albertine Co

question 79

Essay

Albertine Co.manufactures and sells trophies for winners of athletic and other events.Its manufacturing plant has the capacity to produce 16, 000 trophies each month;current monthly production is 12, 800 trophies.The company normally charges $113 per trophy.Cost data for the current level of production are shown below: The company has just received a special one-time order for 1, 200 trophies at $61 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?

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Definitions:

Trafficked

The movement of people or goods illegally, often involving coercion or deception, for purposes such as forced labor or sexual exploitation.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Birth Control Pill

A medication taken orally by women to prevent pregnancy, functioning through the regulation of hormones to inhibit ovulation and other fertility factors.

Tubal Ligation

Tubal Ligation is a surgical procedure for female sterilization involving the sealing, tying, or cutting of the fallopian tubes to prevent eggs from reaching the uterus for fertilization.