Calculate variable overhead per unit and variable selling and administrative costs per unit. $($Round answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Variable overhead per unit

$\backslash$$

Variable selling and administrative costs per unit

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$($a$2)$

Bridgeport, Finland's second largest homebuilder, has approached Wilson with an offer to buy $75,000$ windows during the coming year. Given the size of the order, Bridgeport has requested a $\backslash (35\backslash \%\backslash )$ volume discount on Wilson's normal selling price. The contribution lost from regular sales $25,000$ units. Calculate the contribution from special order. $($If net contribution is negative, enter amount with a negative sign, e$.$g$.\backslash (-5,285\backslash )$ or parentheses, e$.$g$.(5,285).$ Round answer to $0$ decimal places, e$.$g$.8,971.)$

Net contribution from special order

Should Wilson grant Bridgeport's request?

eTextbook and Media Return to the original data. Monk Builders has just signed a contract with the state government to replace the windows in lowincome housing units throughout the state. Monk needs $80,000$ windows to complete the job and has offered to buy them from Wilson at a price of $\backslash (\backslash$$ $110\mathrm{.}00\backslash )$ per window. Monk will pick up the windows at Wilson's plant, so Wilson will not incur the $\backslash (\backslash$$ $2\backslash )$ per window shipping charge. In addition, Wilson will not need to pay a distributor's commission, since the windows will not be sold through a distributor.

Calculate the contribution from special order, contribution lost from regular sales and the net contribution from special order.

Contribution from special order

Contribution lost from forgone regular sales $\backslash (\backslash$$ $\backslash )$

Net contribution from special order

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$($c$2)$

Should Wilson accept Monk's offer?

Wilson

accept Monk's offer.

eTextbook and Media If Wilson decides to accept Monk's offer, it will need to find an additional $30,000$ windows to meet both the special order and normal sales. Metlock Panes has offered to provide them to Wilson at a price of $\backslash (\backslash$$ $130\mathrm{.}00\backslash )$ per window. Metlock Panes will deliver the windows to Wilson, and Wilson would then distribute them to its customers.

Calculate total contribution from outsourcing.

Total contribution from outsourcing $\backslash$$

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$($d$2)$

Should Wilson outsource the production of the extra windows to Metlock Panes?

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Wilson Ivanhoe is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of $500,000$ windows. Current production is budgeted at $450,000$ windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows:

The company's budget includes $\backslash (\backslash$$ $5,400,000\backslash )$ in fixed overhead and $\backslash (\backslash$$ $3,150,000\backslash )$ in fixed selling and administrative expenses. The windows sell for $\backslash (\backslash$$ $150\mathrm{.}00\backslash )$ each. A $\backslash (2\backslash \%\backslash )$ distributor's commission is included in the selling and administrative expenses.

$($a$1)$

Calculate variable overhead per unit and variable selling and administrative costs per unit. $($Round answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Variable overhead per unit

Variable selling and administrative costs per unit

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