Asked by Connor Dimarco on Jun 21, 2024
Verified
Marsdon Company has an annual production capacity of 15,000 units.The costs associated with production and sale of the company's product are given below: 
The company presently is selling 12,000 units annually at a selling price of $28 each.A special order has been received from a distributor who wants to purchase 3,000 units at a special price of $20 each.Regular sales would not be affected by this order and the order could be filled without any impact on total fixed costs.Sales commissions on the special order would be reduced by one-third.
Required:
Determine whether the company should accept the special order.
Special Order
An order for a product or service that is outside the company's regular operations or product line, often requiring special pricing and production considerations.
Sales Commissions
Compensation paid to sales employees based on the quantity or value of sales they have achieved.
- Investigate specific orders and identify their fiscal impacts.
Verified Answer
CH
Yes, the order should be accepted.
Learning Objectives
- Investigate specific orders and identify their fiscal impacts.