Question: LULU ALLT2460 - Section 07 / Chapter 12: Strategy and Sustainability I Quiz 13: Zentech Phone Gear Inc. produces high quality, durable protective cases for

 LULU ALLT2460 - Section 07 / Chapter 12: Strategy and Sustainability

LULU ALLT2460 - Section 07 / Chapter 12: Strategy and Sustainability I Quiz 13: Zentech Phone Gear Inc. produces high quality, durable protective cases for a variety of cellular phones. The company at received a special order to produce 480 units of a modified case for a specific phone model. The unit cost for the requires $31 ($16 in total for variable costs and $15 for allocated fixed manufacturing overhead that is common to the compa regular case is priced at $51/unit. Extra costs for the modified case would be as follows: - Extra paint and plastic required for the modified case costs $3 per unit - Adjustments to the design of the modified case costs $3,216 (a one-time cost). The price charged for a modified case is $55/unit. For each modified case produced and sold the production and be regular case must be given up. (i.e. Zentech Phone Gear is currently operating at tult capacity Should the company accept the order for the modified cases? Do not enter dollar signs or commas in the input boxes. Round Fixed Cost per Unit and Total Relevant Costo 2 decimal places Foregone Contribution Margin per Unit: $ Variable Cost per Unit: 5 Fixed Cost per Unit: s or anything O

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