When Mark received a special$-$order request from Noah, he initially turned it down because the bid price of $$17$ per unit was only half

of his usual selling price. It was also lower than his product costs $($unknown to Noah$)$:

Manufacturing cost per unit

Selling and administrative costs per unit

$$7($includes $$2$ of fixed$-$ MOH $)$

$$10($all variable $-$MOH $)$

If Mark has enough capacity to take on this special order, did he make a good decision to pass on this deal, or did he make a mistake?

Explain.

Special$-$order selling price

Total relevant costs

$

$

per unit

per unit

The quantitative analysis suggests that Mark

the incremental costs by $

have accepted the special order. The incremental benefits are

per unit.