Question: Problem: Module 6 Textbook Problem 3 Learning Objectlve: 6.2 Make appropriate speclal order declsions Vemon Company manufactures a personal computer designed for use in schoois
Problem: Module 6 Textbook Problem 3 Learning Objectlve: 6.2 Make appropriate speclal order declsions Vemon Company manufactures a personal computer designed for use in schoois and markets it under its own label. Vernon has the capacity to produce 32,000 units a year but is currently producing and selling only 17,000 units a yeat. The computer's normal selling price is $1.660 per unit with no volume discounts. The unittevel costs of the computer's production are $450 for direct materials, $140 for direct labor, and $110 for indirect unit-level mariufacturing costs. The total product-and facinty level costs incurred by Vemian during the year are expected to be $2,240,000 and $814,000, respectively Assume that Vemon receives a special order to produce and sell 3,070 computers at $1,270 each. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order
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