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.
| Variable Costs | |
| Direct Materials | $948,600 |
| Direct Labor | $290,700 |
| Selling and Administrative | $41,300 |
| Fixed Costs | |
| Manufacturing | $579,870 |
| Selling and Administrative | $134,640 |
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?
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