Should rayburn''s accept the special order


Rayburn's Tents makes backpacking tents. It has the capacity to produce 10000 tents per year and currently is producing and selling 7000 tents. Normal selling price for a tent is $470. Unit- level costs are $100 for direct materials, $200 for direct labor, and $25 for other manufacturing costs. Facility -level costs of $80 are allocated to each tent. Rayburn's has recieved a special order for 1,500 tents at $340 each.

Required: Should Rayburn's accept the special order? Support your answer with appropriate computation

 

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Accounting Basics: Should rayburn''s accept the special order
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