Cosmos Corporation manufactures collectible toy cars in a plant that has the capacity to produce 3,000 cars each month. Current monthly production is 80 percent of capacity. The normal selling price is $36;

unit-level costs and facility costs for the current activity level are as follows:

WiIFIEVEl COSTS TA te ee tL $ 28,560 Facility-level costs:

icIMUACTCIGING: weacnsmuntuse etaenieeeenor cer 96,000 MAKKCUING -..casg eepecerieycceacgeeer eeegt sa n 78,000 SOLAR OS 1Sterremecree tetae acieeearcerecn $202,560 Cosmos has just received a special order from a Japanese company for 1,100 cars at $31 each, with a target completion date in three months. Cosmos has never competed in the global marketplace. The company has hired a consultant for $5,500 each month of the contract to obtain advice on conducting business in Japan.

Required

a. Does Cosmos have sufficient productive capacity to accept the order? Explain.

b. Is the order attractive from a financial perspective? Show computations to support your answer.

c. Discuss any other considerations that Cosmos should include in analyzing the order.

d. Is it beneficial for Cosmos to take a loss on this order if it desires to enter the Japanese market?
Discuss briefly.