Sales commision on this order will be reduced by one half

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Reference no: EM131611615

The ABC Company has an annual plant capacity of 25,000 units. Predicted data on sales and costs are given below: Sales (20,000 units @$50) $1,000,000.00 Manufacturing Costs: Variable $40 per unit Fixed $30,000.00 SGA Variable (sales commission) $2.00 per unit Fixed $7,000.00 A special order has been received from outside for 4,000 units at a selling price of $45 each. This order will have no effect on regular sales. The usual sales commision on this order will be reduced by one half. Should the company accept the order? Show your work in excel. Please post both the image AND the file.

Reference no: EM131611615

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