Please answer the question in a case format, also please use the information i provided in the screenshot at the bottom of the question, "appendix A$"$

Award Plus Company

Award Plus Co$.$ manufactures medals for athletic events and other contests. Its manufacturing

plant has the capacity to produce $10,000$ medals each month; current monthly production is

$7,500$ medals. The company normally charges $$225$ per medal. Variable costs and fixed costs for

the current activity level of $75$ percent are shown in Appendix A$.$ Award Plus managers$$ bonus is

based on an increase in revenue of $10\%$ and ROI of $15\%.$

Award Plus has just received a special one$-$time order for $2,500$ medals at $$115$ per medal. For

this particular order, the company will incur the same variable and fixed costs as their regular

medals except no variable marketing costs will be incurred. Cathy Senna, Senior Accounting

Manager with Award Plus, has been assigned the task of analyzing this order.

Cathy has asked you, management accountant, for assistance. Cathy would like to know whether

the company should accept or reject the special order and the current full manufacturing $($i$.$e$.,$

prior to the special order$)$ average cost per unit and the recalculated full manufacturing average

cost per unit, including the effect of the special sales order. The prospective customer has

suggested to increase the special order by $500$ medals to $3,000$ medals if the price can be further

reduced. Cathy would like to know the minimum acceptable price for the $2,500$ unit and the

separate order of $500$ additional units.

After examining the costs, Cathy suggested to her supervisor, Gerard LePenn, who is the

controller, that they request competitive bids from vendors for the raw materials, since the

current quote seems high. Gerald insisted that the prices are in line with those of other vendors

and told her that she was not to discuss her observations with anyone else. Cathy later discovered

that Gerald is a brother$-$in$-$law of the owner of the current raw materials supply vendor. How

should Cathy try to resolve the ethical conflict arising out of the controller's insistence that the

company avoid competitive bidding?

Required:

Prepare the analysis requested by Cathy Senna.

Appendix A

Information regarding the special sales order: