Question: **PLEASE SHOW WORKING NOTES (Calculations) to compare my notes. Thank you!! Kneler Co manufactures and sels medals for winners of athletic and other events ts
Kneler Co manufactures and sels medals for winners of athletic and other events ts manufacturing plant has the capacity to produce 12.000 medals each month, current monthly production 800 medas The company normally charges $100 per medal Cost data for the current level of production are shown below Variable costs: Direct materials $520,000 $205,200 Direct labor Selling and administrative $ 47,960 Fixed costs: Manufacturing $350,000 $78,720 Selling and administrative The company has just received a special one time order for 700 medals at $85 each For this particular ordec, no variable selling and adevnistrative costs would be incurred. This order would and have no effect on fixed costs Assume that direct labor is a variable cost Required: Determine the amount of financial advantage of advantage the company accepts this specat order
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