Bestick Company manufactures and sells trophies for winners of athletic events. The company normally charges $65 per trophy. The average costs for a trophy is shown below.Direct materials: $15Direct labor: 10Variable manufacturing overhead: 5Variable marketing expenses: 3Fixed manufacturing overhead: 12 ($1,200,000 fixed manufacturing overhead/100,000 trophies)Total costs: $45Bestick Company has enough idle capacity to accept a one-time only special order for 1,000 trophies at $55 per trophy. Bestick Company will not incur any variable marketing expenses for this order and no additional fixed costs.Required:Should the company accept this special order? Please state your decision and provide numerical support for your decision.
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