Question: 4. James Tech produces wall mounts for flat panel televisions. The forecasted income statement based on 100,000 units is as follows: JAMES TECH Budgeted Income

 4. James Tech produces wall mounts for flat panel televisions. The

4. James Tech produces wall mounts for flat panel televisions. The forecasted income statement based on 100,000 units is as follows: JAMES TECH Budgeted Income Statement For the Year 2018 Sales ($45 per unit) Cost of Production ($37 per unit) Gross Profit Selling Expenses (S4 per unit) Net Income $4,500,000 (3.700,000) 800,000 (400.000 $ 400,000 JAMES TECH received a special order from a hospital supply company offering to buy 12,000 wall mounts for $30 each. There is currently excess capacity to fill the order. The company's sales manager argues for rejecting the order because we are not in the business of paying $37 to make a product to sell for $30." Of the production costs and selling expenses, $800,000 and $100,000, respectively, are fixed. REQUIRED: DO YOU THINK THE COMPANY SHOULD ACCEPT THE SPECIAL ORDER? JUSTIFY YOUR

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