Proctoring Enabled: MH Lab 3: Relevant Costing (i) 11 Anchor Company manufactures a variety of toul buxes. The firm is currently operating at 80% of its full capacity of 5,550 machinehours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. JCL Ltd, a potential customer, has offered to buy 10,000 tool boxes at $10.70 per box, provided that the entire quantity is dellvered in two monthis. The current per box cost data are as follows: Both fixed and varlable overhead are allocated using direct labour-hours as a base. Varlable overhead is $2.30 per direct labour-hour. Without the order, Anchor would have enough business to operate at 4,440 direct labout-hours in each of the next two months. The regular selling price of the tool boxes is $13.70. A sales commission of 50 cents per unit is paid to sales representatives on all regular sales. No additional selling or administrative expenses are anticipated on account of accepling this speclal order and no commissions will be paid on this special order The productlon manager is concemed about the labour time that 10,000 boxes would require. She cannot schedule ovcrtime because Anchor has a policy against it. JCl. will not accept fewer than 10,000 tool boxes. Therefore, in order to fill the special order, it would be necessary for Anchor Company to divert some of its regular sales to the speclal order. Required: 1.a. Prepare contribution margin income statements for the two-month perlod both with and without the special order, (Leave no cells blank- be certain to enter " 0 " wherever required.)