2b

Current Attempt in Progress Sheridan Inc, manufactures two electronic products, widgets and gadgets, and has a capacity of 1.100 machine hours. Prices and costs for each product are as follows: Widget Gadget Selling price per unit $251 $331 31 36 Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 11 13 31 45 *Variable manufacturing overhead costs are applied at a rate of $41 per machine hour. Dynatech Industries, a potential client has offered $251 per unit to Sheridan for 250 special units. These 250 units would incur the following production costs and time: $8,525 Direct materials Other direct costs $3,500 Machine hours 225 Assume that Sheridan is currently operating at full capacity Calculate the contribution marsin per unit and per machine hour (Round machine hours to 2 decimal places, eg. 12.25 and final answers to decimal places, eg, 125.) Widget Gadget New Order CM per unit $ $ CM per machine hour $ $ $ Determine whether Sheridan should produce the units for the special order instead of widget or gadget units. Sheridar produce the units for the special order instead of widget or gadget units. should should not