Help Save & Exit Submit Check my work 1 Alton Inc. is working at full production capacity producing 36.000 units of a unique product. Manufacturing costs per unit for the product are as follows: $12 Direct labor Manufacturing overhead Total manufacturing cost per unit 13 $36 The per-unit manufacturing overhead cost is based on a $5 variable cost per unit and $288,000 fixed costs. The nonmanufacturing costs, all variable, are $12 per unit, and the sales price is $60 per unit. References Sports Headquarters Company (SHC) has asked Alton to produce 7,000 units of a modification of the new product. This modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $6 (not $12). Alton would sell the modified product to SHC for $45 per unit Required 1-a. Calculate the contribution margin for 7,000 units for both the current and special order 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Inc. had been working at less than full capacity to produce 30,400 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Prey 1 of5 Next> IS TOI Boh the current and special order U. Jnoulg Alton produce the special order for SHC? 2. Suppose that Alton Inc. had been working at less than full capacity to produce 30,400 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Req 1B Req 2 es Calculate the contribution margin for 7,000 units for both the current and special order. Contributio Margin $140,000 Current 112,000 Req 1B > Prey 1 of 5E Next > OTMBuion margin for 7,000 units for both the current and special order 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Inc. had been working at less than full capacity to produce 30,400 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Req IA Req 1B Req 2 Suppose that Alton Inc. had been the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? (Round your answer to 2 decimal places.) working at less than full capacity to produce 30,400 units of the product when SHC made S 40.00 Req 18 Prev1 of 5 Next