Question: I just need proper work shown for this problem. The correct answer is down below. 1. Do not accept because it would decrease OI by
sts Watson Company produces kitchen cabinets for homebuilders across the United States. The following information relates to current production: Sales price per unit $200 Variable costs per unit: COGS $170 Selling and administrative $5 Total fixed costs: COGS $400,000 Selling and administrative $125,000 The company has been approached with a special order for 1,000 cabinets at a sales price of $165 per unit. Fixed costs would remain unchanged. Should the company accept the special order, and why? Show your work
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