Create excel spreadsheet to determine which special order to accept.

The company has been offered two different special orders: 1- the production of 40,000 plain circular saws or 2- the production of 20,000 professioal circular saws The company has enough excess capacity to accept either offer, but not both. The plain saw sells for $65 and has a variable cost of $50. The professional saw sells for $100 and has a variable cost of $75.

Answer the following questions when spreadsheet is completed:

1. 1. What is the contribution margin and contribution-margin ratio per unit for the plain circular saw? For the professional circular saw?

2. 2. What is the total contribution margin for the plain circular saw if the company fills this special order? What for professional circular saw special order?

3. 3. What general conclusion can you draw from the data illustrated by the Excel problem?