Question: PF ( Pty ) Ltd manufactures plastic storage boxes for which the normal monthly demand is 2 5 5 0 0 units. The storage boxes

PF(Pty) Ltd manufactures plastic storage boxes for which the normal monthly demand is 25500 units. The storage boxes sell at R165 each. The factory currently operates at85% capacity (therefore 100%/ maximum capacity =25500 x 100/85=30000 units).
The variable cost to manufacture one storage box is R68. Fixed costs amount to R304000 per month. Fixed cost is recovered based on the normal demand.
PF (Pty) Ltd received a special order for 6000 units at a reduced selling price of R100 per storage box. If this order is accepted, it has to be delivered in full within the next month.
The normal demand for this product will not be affected if the special order is accepted.
Determine whether the special order should be accepted or not.

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