=+Department. Wylies Ltd incurs $156000 in direct materials costs. The Tablet-making Department manufactures only 390000 tablets from the 200000 grams of mixture processed; 2.5% of the direct materials mixture is lost in the tablet-making process. Each tablet sells for $1. All costs other than direct materials costs are fixed costs. The following requirements refer only to the preceding data.

There is no connection between the requirements.

Required 1 An outside contractor makes the following offer: if Wylies Ltd will supply the contractor with 10000 grams of mixture, the contractor will manufacture 19500 tablets for Wylies Ltd (allowing for the normal 2.5% loss of the mixture during the tabletmaking process) at $0.12 per tablet. Should Wylies Ltd accept