Question: A . Special Order: a one - time customer order, often involving a large quantity and a low priceCinnamon Depot bakes and sells cinnamon rolls

A. Special Order: a one-time customer order, often involving a large quantity and a low priceCinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was:Revenues$875,000Direct materials425,000Direct labor75,000Manufacturing overhead (fixed)125,000Manufacturing overhead (variable)90,000At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customer's request. This order will not affect any of its other operations. Should the company accept the special order?Show all calculations.1. Indicate whether you would accept the special order by circling a response below.YesorNo2. What is the effect of the decision on the company's operating profit?Increased profitorDecreased profitBy how much?

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