Special Order a$.$ Present an analysis supporting a decision to accept or reject the special order. $($Round computations to the nearest cent.$)$

$\backslash$table$[[$Differential Analysis$],[,$Per Unit,Total$],[$Differential revenue,,$43,200],[$Differential costs,,$],[$Direct material,$10\mathrm{.}8,],[$Direct labor,$9,],[$Variable manufacturing overhead,$6\mathrm{.}66,],[$Selling:$,,],[$Commission$,1\mathrm{.}44,],[$Shipping $($F$.$O$.$B$.$ factory terms$),0\mathrm{.}8,],[$Total variable cost,$30\mathrm{.}1,36,090],[$Contribution margin from special order,,$7,110],[$Fixed cost increment:,,$],[$Extra cost$,,4,320],[$Profit on special order,,$2,790]]$

b$.$ What is the lowest price Glendale could receive and still make a profit of $$3,600$ before income taxes on the special order? Round answer to two decimal places, if applicable.

$$

Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of $8,000$ units of product that sell for $$60$ each. For the foreseeable future, regular sales volume should

continue to equal normal capacity.

Notes:

Beyond normal capacity, fixed overhead costs increase $$1,800$ for each $500$ units or fraction thereof until a maximum capacity of $10,000$ units is reached.

Selling expenses consist of a $6\%$ sales commission and shipping costs of $80$ cents per unit. Glendale pays only three$-$fourths of the regular sales commission on sales totaling $501$ to $1,000$ units and only two$-$

thirds the regular commission on sales totaling $1,000$ units or more.

Glendale's sales manager has received a special order for $1,200$ units from a large discount chain at a price of $$36$ each, F$.$O$.$B$.$ factory. The controller's office has furnished the following additional cost data related

to the special order:

Changes in the product's design will reduce direct material costs $$1\mathrm{.}50$ per unit.

Special processing will add $20\%$ to the per$-$unit direct labor costs.

Variable overhead will continue at the same proportion of direct labor costs.

Other costs should not be affected.