Custom Tooling Solutions has a production capacity of 3,100 units each month,but current production is only 2,600 units.Total manufacturing costs are $62 per unit and marketing costs are $17 per unit.A client offers to purchase 525 units at $78 per unit for the next five months.Should the manager at Custom Tooling Solutions accept the one-time-only special order if only absorption-costing data is available?

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The Answer of Custom Tooling Solutions has a production capacity of 3,100 units each month,but current production is only 2,600 units.Total manufacturing costs are $62 per unit and marketing costs are $17 per unit.A client offers to purchase 525 units at $78 per unit for the next five months.Should the manager at Custom Tooling Solutions accept the one-time-only special order if only absorption-costing data is available?

Custom Tooling Solutions Has a Production Capacity of 3,100 Units