Current Attempt in Progress

Jennifer could not stop thinking about a phone call she had received earlier. A potential customer had the nerve to call and ask if her

company could give him a special deal on its main product, a bicycle helmet. Since Jennifer knew the product cost of the helmet is $$14,$

she quickly said no to his offer of $$10\mathrm{.}30$ per unit. After thinking about it all day, though, she is now wondering if she did the right thing.

The helmet production line has enough capacity available to produce the $100$ helmets the customer requested. The detailed per unit

product costs include DM of $$2,$ DL of $$4,$ variable MOH of $$3,$ and fixed MOH of $$5.$

According to this information, should Jennifer have accepted the special order?

Additional contribution margin for company

$

Jennifer

have accepted the special order.