Describe the qualitative factors that Katzev should consider before accepting the special order Described in Exercise 6-7A. In Exercise 6-7A Katzev Company manufactures a personal computer designed for use in schools and markets it Under its own label. Katzev has the capacity to produce 40,000 units a year but is currently producing and selling only 32,000 units a year. The computer s normal selling price is $750 per unit with no volume discounts. The unit-level costs of the computer s production are $250 for direct materials, $225 for direct labor, and $62.50 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Katzev during the year are expected to be $2,000,000 and $500,000, respectively. Assume that Katzev receives a special order to produce and sell 6,000 computers at $562.50 each.
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