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Franklin Company manufactures a personal computer designed for use in schools and markets it under its own label. Franklin has the capacity to produce 34,000 units a year but is currently producing and selling only 17,000 units a year. The computer’s normal selling price is $1,750 per unit with no volume discounts. The unit-level costs of the computer’s production are $560 for direct materials, $230 for direct labor, and $160 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Franklin during the year are expected to be $2,150,000 and $801,000, respectively. Assume that Franklin receives a special order to produce and sell 3,130 computers at $1,220 each. Required Calculate the contribution to profit from the special order. Should Franklin accept or reject the special order? Contribution to profit $ 1,388,600 Accept Should Franklin accept or reject the special order?


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