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Albertine Co

question 30

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: 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? 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?


Definitions:

Subliminal Perception

The processing of information by sensory systems without a person's conscious awareness.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Average Threshold

The mean value of sensory input strength required for an organism to detect or respond to a stimulus.

Human Hearing

The sense through which sounds are perceived, involving the detection of vibrations through structures in the ear, leading to the processing of these signals by the brain.

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