personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 27,000 units a year but is currently producing and selling only 16,000 units a year. The computer’s normal selling price is $1,790 per unit with no volume discounts. The unit-level costs of the computer’s production are $420 for direct materials, $270 for direct labor, and $150 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,180,000 and $802,000, respectively. Assume that Benson receives a special order to produce and sell 3,080 computers at $1,290 each. Required Calculate the contribution to profit from the special order. Should Benson accept or reject the special order?
personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 27,000 units a year but is currently producing and selling only 16,000 units a year. The computer’s normal selling price is $1,790 per unit with no volume discounts. The unit-level costs of the computer’s production are $420 for direct materials, $270 for direct labor, and $150 for indirect unit-level
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