Question: Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate speclal order decisions Zachary Company manufactures a personal computer designed for-use in schools and
Problem: Module 6 Textbook Problem 3 Learning Objective: 6-2 Make appropriate speclal order decisions Zachary Company manufactures a personal computer designed for-use in schools and markets it under its own label. Zochary has the capacity to produce 40,000 units a year but is currently producing and selling only 10,000 units a yeat, The computer's normal selling price is $1,660 per unit with no volume discounts. The unit-level costs of the computer's production are $430 for direct materials, $280 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product-and focility-level costs incurred by Zachary during the year are expected to be $2,220,000 and $804,000, respectively. Assume that Zachary receives a special order to produce and sell 3,010 computers at $1,250 each, Required Calculate the contribution to profit from the special order. Should Zachary accept or reject the special order
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