Bates Golf Supply Produces a Golf Bag That Sells for $220

Bates Golf Supply produces a golf bag that sells for $220. Although the company's production capacity is 5,000 bags per year, only 4,000 bags are currently being produced and sold. The production costs for 4,000 bags are as follows:

$\begin{array}{llr} \text {Unit-level material cost } &\$300,000\\ \text { Unit-level labor cost } &240,000\\ \text {Unit-level overhead } &75,000\\ \text { Batch-level setup costs (500 units per batch)} &16,000\\ \text { Product-level costs} &20,000\\ \text { Allocated facility-level costs } &25,000\\\end{array}$
Golf Mart Stores has offered to purchase 1,000 golf bags as a one-time special purchase at a price of $170 per bag.Required:Prepare a quantitative analysis that indicates whether the special order should be accepted.What qualitative factors should be considered in this special order decision?

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