1. Slo-Mo Industries, incurs the following costs for the skillets it produces.

Per Unit Total

Sales 50,000 units $56.50 $2,825,000

Variable Costs:

Direct Materials 20.16 1,008,000

Direct Labor 16.98 849,000

Variable OH 5.00 250,000

Contribution Margin

Fixed Costs:

Fixed OH .25 12,500

Income

Speedo Corp wants to order 25,000 skillets from Slo-Mo Industries as a special one-time order for $42.50 per skillet. (Slo-Mo Industries does have the extra capacity to produce the additional 25,000 skillets).

Should Slo-Mo Industries accept the order? _________

What would be the minimum price for the skillets it should accept? _________