Professional Printers has decided to discontinue its basic printer model. The company has some partially completed units on hand with incurred costs of $\backslash (\backslash$$ $45\backslash )$ per unit. The company could complete the printers with the following additional unit costs: direct materials, $\backslash (\backslash$$ $8\backslash )$; direct labor, $\backslash (\backslash$$ $16\backslash )$; variable overhead, $\backslash (\backslash$$ $9\backslash )$; and allocated fixed overhead, $\backslash (\backslash$$ $12\backslash ).$ The fixed costs relate to assigned rent, supervision, warehousing, and depreciation on plant assets. If Professional Printers completes the printers, the printers can be sold at $\backslash (\backslash$$ $98\backslash )$ per unit. Another company is willing to buy the printers as is for $\backslash (\backslash$$ $68\backslash ).$

Read the requirements.

Requirement a$.$ Discuss why each of the following statements is true or false with respect to the decision of whether to complete the printers or accept the outside offer.

$1.$ Professional Printers should complete the printers since the relevant profits would be $\backslash (\backslash$$ $65\backslash )$ with the option of completing the printers.

$2.$ Professional Printers should accept the outside offer since the company could make $\backslash (\backslash$$ $23\backslash )$ more per unit.

$3.$ Professional Printers is indifferent since the incurred costs equal the additional costs.

$4.$ Professional Printers should accept the outside offer since the net relevant profit between the two options is $\backslash (\backslash$$ $3\backslash ).$

Requirement b$.$ Besides the information provided in the problem, give three qualitative factors that the company should keep in mind. $($Select three options.$)$

A$.$ Will selling the printers as is hurt the company's brand or reputation?

B$.$ Will the reworked printers be at an acceptable level of quality?

C$.$ If the printers are sold as is$,$ could the excess capacity be used to produce a more profitable product?

D$.$ Will the special order derail the current production schedule?

E$.$ If the printers are sold as is$,$ could some of the variable costs be avoidable?