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Special Order (9 points) Rothery Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18.000 medals each month. Current monthly production is 17,100 medals. The company normally charges $88 per medal. Cost data for the current level of production, of 17,100 medals, is shown below: Variable costs: Direct Materials Direct Labor Selling and Administrative $495,900 $324,900 $30,780 Fixed costs: Manufacturing Selling and administrative $345,420 $164,160 The company has just received a special one-time order for 600 medals at $73 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Question 44 (3 points) Should the company accept this special offer No Yes Question 45 (3 points) If the special order is accepted, will the net income increase or decrease? decrease increase Question 46 (3 points) If the special order is accepted, by how much will net income increase or ? w A Previous Page Next Page Page 12