How would accepting the order affect Grill Time's operating income?
Grill Time sells its barbecue sets for $170 each. Suppose the company incurs the following average cost per barbecue set:
Grill Time has enough idle capacity to accept a one-time-only special order from Backyard Living, Inc. for 2,000 barbecue sets at a sales price of $130 per set. Grill Time will not incur $2 of variable selling expenses for this order.
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