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Oakland Preciston Products (OPI') manufae tures and sells a variety of scales for the kitihen and oflice. OP' sells pimailly to Kithenware stores, discount stores, and so on. Fwo of the scales It produces for kitchen use are the fook and Ilaker. The Cook is baske foed scale. The Haker has a greater caparity and spectal features that fac ilitate adiusting hakking tee liees for mote of fewer people. The following intormallon is avallable The average wage rate is $12 per hour. Vatiable overhead varles with the quantily of direct labor hours. Ihe plant has a car 20,000 direct labor hours, but cument production uses only 1/,/50 direct labor hours. Required: 0. A natlonwide kitchenware chain has offered to buy 30,000 Cook models and 15,000 thaker models if the pilce is lowered to biv. \$.35, respectively, per unit a-1. If OPP accepts the offer, how many dired labor hours will be requited to produce the addillonal scales? a-2. Complete the following table to determine the differential profit increase (or decrease) if OPP accepts this proposal. Pikes on regular sales will remain the same. b-1. Suppose that the kitchenware chain has offered instead to buy 50,000 Cook models at $10 per unit and 30,000 Baker models . \$35. This customer will purchase the modes only in an all or nothing deal. That is, OPP must provide all 50,000 units of the Cook model and 30,000 units of the Baker model or nothing at all. In vlew of its capaelty constraints, OPP will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contibution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its productlon capacity to meel the extra demand. c-1. Assume that, in the situation presented in requirement b 1, the plant can work overtime. Dlreet labor costs for the overtime The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours. Required: a. A nationwide kitchenware chain has offered to buy 30,000 Cook models and 15,000 Baker models if the price is lowered to $10 and $35, respectively, per unit. a-1. If OPP accepts the offer, how many direct labor-hours will be required to produce the additional scales? a-2. Complete the following table to determine the differential profit increase (or decrease) if OPP accepts this proposal. Prices on regular sales will remain the same. b-1. Suppose that the kitchenware chain has offered instead to buy 50,000 Cook models at $10 per unit and 30,000 Baker model \$35. This customer will purchase the models only in an all-or-nothing deal. That is, OPP must provide all 50,000 units of the Cook model and 30,000 units of the Baker model or nothing at all. In view of its capacity constraints, OPP will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand. c-1. Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increase to $45 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. c-2. How much will the profits change in this situation compared to the capacity constraints scenario in requirement b-1? Complete this question by entering your answers in the tabs below. Oakland Preciston Products (OPI') manufae tures and sells a variety of scales for the kitihen and oflice. OP' sells pimailly to Kithenware stores, discount stores, and so on. Fwo of the scales It produces for kitchen use are the fook and Ilaker. The Cook is baske foed scale. The Haker has a greater caparity and spectal features that fac ilitate adiusting hakking tee liees for mote of fewer people. The following intormallon is avallable The average wage rate is $12 per hour. Vatiable overhead varles with the quantily of direct labor hours. Ihe plant has a car 20,000 direct labor hours, but cument production uses only 1/,/50 direct labor hours. Required: 0. A natlonwide kitchenware chain has offered to buy 30,000 Cook models and 15,000 thaker models if the pilce is lowered to biv. \$.35, respectively, per unit a-1. If OPP accepts the offer, how many dired labor hours will be requited to produce the addillonal scales? a-2. Complete the following table to determine the differential profit increase (or decrease) if OPP accepts this proposal. Pikes on regular sales will remain the same. b-1. Suppose that the kitchenware chain has offered instead to buy 50,000 Cook models at $10 per unit and 30,000 Baker models . \$35. This customer will purchase the modes only in an all or nothing deal. That is, OPP must provide all 50,000 units of the Cook model and 30,000 units of the Baker model or nothing at all. In vlew of its capaelty constraints, OPP will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contibution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its productlon capacity to meel the extra demand. c-1. Assume that, in the situation presented in requirement b 1, the plant can work overtime. Dlreet labor costs for the overtime The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours. Required: a. A nationwide kitchenware chain has offered to buy 30,000 Cook models and 15,000 Baker models if the price is lowered to $10 and $35, respectively, per unit. a-1. If OPP accepts the offer, how many direct labor-hours will be required to produce the additional scales? a-2. Complete the following table to determine the differential profit increase (or decrease) if OPP accepts this proposal. Prices on regular sales will remain the same. b-1. Suppose that the kitchenware chain has offered instead to buy 50,000 Cook models at $10 per unit and 30,000 Baker model \$35. This customer will purchase the models only in an all-or-nothing deal. That is, OPP must provide all 50,000 units of the Cook model and 30,000 units of the Baker model or nothing at all. In view of its capacity constraints, OPP will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand. c-1. Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increase to $45 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. c-2. How much will the profits change in this situation compared to the capacity constraints scenario in requirement b-1? Complete this question by entering your answers in the tabs below