Rothery Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has
the capacity to produce 18,000 medals each month; current monthly production is 17,100 medals. The company
normally charges $88 per medal. Cost data for the current level of production are shown below:
The company has just received a special one-time order for 600 medals at $73 each. For this particular order, no
variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs.
Required: Should the company accept this special order? Why?