Quinn Machines Company is evaluating two customer orders. It can accept only one because of capacity limitations. The data associated with each order follow:

Required
a. Assume that Quinn 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b. The customer presenting Order A has withdrawn it because of its financial hardship.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, Quinn'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.

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Cost Category Order A Order B Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market valu Allocated portion of companywide facility-sustaining costs Insurance coverage $400,000 150,000 137,000 53,000 40,000 10,000 14,000 4,000 27,000 $335,000 118,000 107,400 49,000 40,000 12,000 14,000 3,600 27,000