Weisbach Wallets (WW)produces nylon waterproof wallets. WW's plant capacity is 50,000 per month. Unit costs for the current production volume of 48,000 wallets are:
Direct materials $6.00
Direct labour 4.00
Variable overhead 1.50
Fixed overhead 3.00
Marketing - fixed 1.00
Marketing - variable 2.80
Current monthly sales are 48,000 wallets at $18 each. Suppose REI Quebec has contacted the manufacturing plant at WW about purchasing 2,000 units at $13 each. Current sales would not be affected by this order.
a)Should WW accept this special order? Provide computations to support your answer.
b)What is the minimum price that WW would generally accept for this order?
c)List two qualitative factors that should be considered for this decision.

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The Answer of Weisbach Wallets (WW)produces nylon waterproof wallets. WW's plant capacity is 50,000 per month. Unit costs for the current production volume of 48,000 wallets are:
Direct materials $6.00
Direct labour 4.00
Variable overhead 1.50
Fixed overhead 3.00
Marketing - fixed 1.00
Marketing - variable 2.80
Current monthly sales are 48,000 wallets at $18 each. Suppose REI Quebec has contacted the manufacturing plant at WW about purchasing 2,000 units at $13 each. Current sales would not be affected by this order.
a)Should WW accept this special order? Provide computations to support your answer.
b)What is the minimum price that WW would generally accept for this order?
c)List two qualitative factors that should be considered for this decision.

Weisbach Wallets (WW)produces Nylon Waterproof Wallets