Should the company accept this special order? Why?

b.In making this decision what other factors should the company consider?

Incremental Analis: Special Order: Armstrong Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 15,000 medals each month; current monthly production is 12,750 medals. The company normally charges $120 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials ....................................... $624,750 Direct labor ............................................. $306,000 Selling and administrative ...................... $15,300 Fixed costs: Manufacturing ........................................ $506,175 Selling and administrative ...................... $123,675 The company has just received a special one-time order for 700 medals at $83 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on xed costs