02 P8-2A. Special Order 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. a. C. Direct materials.. Direct labor... Variable manufacturing overhead.... Fixed manufacturing overhead (Note 1). Selling expense (Note 2) .... Administrative expense (fixed) $100,800 62,400 46,800 38,400 35,200 15,000 $298,600 Notes: 1. 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. 2. 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. price of $36 each, F.O.B. factory. The controller's office has furnished the following additional cost Glendale's sales manager has received a special order for 1,200 units from a large discount chain at a data related to the special order: 1. Changes in the product's design will reduce direct materials costs $1.50 per unit. 2. Special processing will add 20% to the per-unit direct labor costs. 3. Variable overhead will continue at the same proportion of direct labor costs. 4. Other costs should not be affected. Required tions to the nearest cent.) Present an analysis supporting a decision to accept or reject the special order. (Round b. What is the lowest price Glendale could receive and still make a $3,600 profit taxes on the special order? What general qualitative factors should Glendale consider? PE

2A. Special Order 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: 1. 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. 2. 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: 1. Changes in the product's design will reduce direct materials costs $1.50 per unit. 2. Special processing will add 20% to the per-unit direct labor costs. 3. Variable overhead will continue at the same proportion of direct labor costs. 4. Other costs should not be affected. Required a. Present an analysis supporting a decision to accept or reject the special order. (Round computations to the nearest cent.) b. What is the lowest price Glendale could receive and still make a $3,600 profit before income taxes on the special order? c. What general qualitative factors should Glendale consider