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Manning Co

question 30

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Manning 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 15,300 trophies.The company normally charges $141 per trophy.Cost data for the current level of production are shown below: Manning 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 15,300 trophies.The company normally charges $141 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 $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? The company has just received a special one-time order for 900 trophies 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?


Definitions:

Social Policy

Social policy encompasses guidelines, principles, legislation, and activities that affect the living conditions conducive to human welfare, such as health, education, and social security.

Contract Actions

Legal proceedings that involve disputes over the terms, performance, or enforcement of a contract.

Substitute Goods

Products or services that can be used in place of each other, based on similar features or fulfilling the same needs.

Sales Agreement

A contract between a buyer and seller outlining the terms and conditions of a sale of goods or services.

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