$4.$ A new customer approaches your company with a SPECIAL ORDER: They would like to purchase $100,000$ cookies for $$\mathrm{.}48($CENTS$)$ per Cookie....the Cookies cost $$\mathrm{.}80($Cents$)$ to make and usually sell for $$1\mathrm{.}20$ per Cookie:

Variable Costs:

Direct Materials $$\mathrm{.}20$

Direct Labor $$\mathrm{.}10$

Manufacturing Overhead $$\mathrm{.}15$

Fixed Costs $$\mathrm{.}35$

Total Costs $$\mathrm{.}80$

Should the Special Order be Accepted...assuming they have excess capacity...and the current customers will not be made aware of the Special Order Price.......or Rejected and WHY?

$5.$ Tara$$s Treasures currently manufactures her product for $$30$ per unit:

Variable Costs $$22$

Fixed Costs $$8$

Total $$30$

Tara is approached by a supplier who offers to make her product for $$25$ per unit, Should Tara agree assuming she cannot eliminate any of the Fixed Costs?

If Tara can eliminate $$6$ of the Fixed Costs, should she now accept the offer to have her inventory made by another company instead of making the product herself?

$6.$ Winsome$$s Wish Company sells games for $$55$ per game. Her Variable Costs are $$35$ per game and her Fixed Costs are $$900,000.$ If Winsome has a Target Profit $$550,000,$ how many units must she sell in order to meet the Target Profit goal?

$7.$ Tara$$s Treasures sells Jewelry at $$75$ per item. Her Variable Costs are $$40$ and her Fixed Costs are $$700,000.$ If Tara sells $24,500$ units, what is her Margin of Safety?