Question: Problem No 1 ( Special order ) The Modern Packing Corporation ( MPC ) specializes in the manufacture of one - liter plastic bottles. The

Problem No 1(Special order)
The Modern Packing Corporation (MPC) specializes in the manufacture of one-liter
plastic bottles. The plastic molding machines are capable of producing 100 bottles per
hour. The firm estimates that the variable cost of producing a plastic bottle is 25 cents.
The bottles are sold for 55 cents each.
Management has been approached by a local toy company that would like the firm to
produce a molded plastic toy for them. The toy company is willing to pay $3 per unit for
the toy. The unit variable cost to manufacture the toy will be $2.40. In addition, MPC
would have to incur a cost of $20,000 to construct the mold required exclusively for this
order. Because the toy uses more plastic and is of a more intricate shape than a bottle, a
molding machine can produce only 40 units per hour. The customer wants 100,000
units. Assume that MPC has a total capacity of 10,000 machine-hours available during
the period in which the toy company wants delivery of the toys. The firm's fixed costs,
excluding the costs to construct the toy mold, during the same period will be $200,000.
Required:
Suppose the demand for its bottles is 750,000 units, and the special toy order has to
be either taken in full or rejected totally. Should MPC accept the special toy order?
Explain your answer.
Suppose the demand for its bottles is 850,000 units, and the special toy order has to
be either taken in full or rejected totally. Should MPC accept the special toy order?
Explain your answer.
Suppose the demand for its bottles is 850,000 units, and MPC can accept any quantity
of the special toy order. How many bottles and toys should it manufacture?
could you help me in answer this qustion (if it possible to answer it like table incloud accept and rejected coloum )
 Problem No 1(Special order) The Modern Packing Corporation (MPC) specializes in

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