Hawk Company manufactures two products, QC376 and GR365. The following table provides the details relating to the two products: 

Hawk Company has a practical capacity of 60,000 direct labor hours. 

Required: 

(a) How many direct labor hours are consumed by the current production plan? 

(b) Hawk Company has just received an order for 2,000 units of QC376. What is the minimum price per unit for this special order? 

(c) Suppose now that the special order is for 5,000 units of QC376. If this order is accepted, Hawk Company must deliver all 5,000 units. What is the breakeven price per unit for this special order?

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Price per unit Variable costs per unit Direct materials.... Direct labor... Variable overhead.. Variable selling expense. Allocated fixed cost per unit.. Contribution margin per unit.... Labor hours per unit... Current production (units).. QC376 $20.00 $ 6.00 4.00 1.00 2.00 2.00 $ 7.00 1.00 25,000 GR365 $30.00 $9.00 7.00 2.00 3.00 3.00 $9.00 1.50 22,000