Liz Cycles received a request for a special order from the Tallahassee police department to produce 100 specially modified mountain bikes at a price of $179 each. Liz Cycles can easily modify its City Cruiser model to fit the specifications of the Police Department. The usual selling price of the City Cruiser bike is $249, and per unit product costs are as follows: Direct Materials $86 Direct Labor . 45 Manufacturing Overhead: Variable Manufacturing 6 Fixed Manufacturing Costs* 45 Unit product cost .. $182 *The fixed manufacturing overhead would be unaffected by variations in how many bikes are produced in any given period. The modifications requested by the police department would require an additional $17 of variable costs. In addition, the company would have to pay a graphic design studio $1,200 to design a logo for the bikes. This order will have no effect on the companys other sales and would not disrupt regularly scheduled production. Should Liz accept the special order? (Show your work)

Question 96 points) Liz Cycles received a request for a special order from the Tallahassee police department to produce 100 specially modified mountain bikes at a price of $179 each. Liz Cycles can easily modify its City Cruiser model to fit the specifications of the Police Department. The usual selling price of the City Cruiser bike is $249, and per unit product costs are as follows: $86 45 Direct Materials Direct Labor .... Manufacturing Overhead: Variable Manufacturing Fixed Manufacturing Costs* Unit product cost 6 45 $182 *The fixed manufacturing overhead would be unaffected by variations in how many bikes are produced in any given period. The modifications requested by the police department would require an additional $17 of variable costs. In addition, the company would have to pay a graphic design studio $1,200 to design a logo for the bikes. This order will have no effect on the company's other sales and would not disrupt regularly scheduled production. Should Liz accept the special order? (Show your work)