Inman Machines Company is evaluating two customer orders from which it can accept only one because of capacity limitations. The data associated with each order follow.

Required
a. Assume that Inman has decided to accept one of the two orders. Identify the information relevant to selecting one order versus the other. Recommend which job to accept, and support your answer with appropriate computations.
b. The customer presenting Order A has withdrawn it because of its financial hardship. Under this circumstance, Inman's choice is to accept or reject Order B alone. Identify the information relevant to this decision. Recommend whether to accept or reject Order B. Support your answer with appropriate computations.

Cost Category Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance coverage Order A Order B $900,000 $770,000 324,000 106,000 80,000 20,000 28,000 8,000 54,000 264,800 98,000 80,000 24,000 28,000 7,200 54,000