Antsy Labs produced and sold 50,000 fidgets and is operating at 80% of its plant capacity....

 

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Antsy Labs produced and sold 50,000 fidgets and is operating at 80% of its plant capacity. Unit information about its product is shown below: Sales price Variable manufacturing cost Fixed manufacturing cost ($25,000 50,000) Profit per unit $4.50 Antsy Labs should 0.50 $7 5 $2 Antsy Labs received a special order from a local company to buy 10,000 fidgets for $5 per unit. This is a one-time only order and acceptance of this order will not affect the company's regular sales. Management of Antsy Labs is hesitant to a accept the special order since the price is lower than its current price per unit. What should Antsy Labs do? the special order since it will operating income for the company by $ Antsy Labs produced and sold 50,000 fidgets and is operating at 80% of its plant capacity. Unit information about its product is shown below: Sales price Variable manufacturing cost Fixed manufacturing cost ($25,000 50,000) Profit per unit $4.50 Antsy Labs should 0.50 $7 5 $2 Antsy Labs received a special order from a local company to buy 10,000 fidgets for $5 per unit. This is a one-time only order and acceptance of this order will not affect the company's regular sales. Management of Antsy Labs is hesitant to a accept the special order since the price is lower than its current price per unit. What should Antsy Labs do? the special order since it will operating income for the company by $

Answer rating: 100% (QA)

To determine whether Antsy Labs should accept the special order we need to calculate the impact on t... View the full answer