Jerston Company has an annual plant capacity of 4,000 units. Data concerning this product are given below:
|Annual Sales at Regular Selling Prices||3,400||Units|
|Selling and Administrative Expenses:|
The company has received a special order for 600 units at a
selling price of $22 each. Regular sales would not be affected, and
sales commissions on the 600 units would be reduced by one-fourth.
This special order would have no impact on total fixed costs.
INSTRUCTIONS Determine whether the company should accept the special order. When complete, answer each of the following by selecting the correct match from the list provided.
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