4-53 (Algo) Special Order (LO 4-1, 2) Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Star100 and the Star150, which differ in terms of capabilities. The following information is available Costs per Unit Direct materials Star100 $ 75 Star150 85 Direct labor 40 50 Variable overheadi 20 25 Fixed overhead 100 130 Total cost per unit $ 235 $ 290 Price $ 300 $ Units sold 4,000 400 2,000 The average wage rate is $25 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 10.400 direct labor-hours Required: a. A nationwide car-sharing service has offered to buy 2,600 Star100 systems and 2.600 Star150 systems if the price is lowered to $210 and $260, respectively, per unit. a-1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? a-2. Complete the following table to determine the differential profit increase (or decrease) if Unter accepts this proposal. Prices on regular sales will remain the same. b-1. Suppose that the car-sharing has offered instead to buy 3.600 each of the two models at $210 and $260, respectively. This customer will purchase the 3,600 units of each model only in an all-or-nothing deal. That is, Unter must provide all 3,600 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand c-1. Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $37.50 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production, Complete the table below to determine the total contribution margin c-2. How much will the profits change in this situation? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Reg C2 a. A nationwide Car $210 and $260, respectively, per unit. a-1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? a-2. Complete the following table to determine the differential profit increase (or decrease) if Unter accepts this proposal. Prices on regular sales will remain the same. b-1. Suppose that the car-sharing has offered instead to buy 3,600 each of the two models at $210 and $260, respectively. This customer will purchase the 3,600 units of each model only in an all-or-nothing deal. That is, Unter must provide all 3,600 units of each model or none. Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand. c-1. Assume that, in the situation presented irr requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $37.50 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. c-2. How much will the profits change in this situation? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 A nationwide car-sharing service has offered to buy 2,600 Star100 systems and 2,600 Star150 systems if the price is lowered to $210 and $260, respectively, per unit. A1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? Direct labor-hours Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 A nationwide car-sharing service has offered to buy 2,600 Star100 systems and 2,600 Star150 systems if the price is lowered to $210 and $260, respectively, per unit. A2. Complete the following table to determine the differential profit increase (or decrease) if Unter accepts this proposal. Prices on regular sales will remain the same. Differential revenues: Star 100 + Star 150 $ 0 Differential costs: Star 100 Star 150 0 Differential profit (loss) $ 0 < Req A1 Req B1> Show less A bes Req A1 Req A2 Reg B1 Req B2 Req C1 Req C2 Suppose that the car-sharing service has offered instead to buy 3,600 each of the two models at $210 and $260, respectively. This customer will purchase the 3,500 units of each model only in an all-or-nothing deal. That is, Unter must provide all 3,600 units of each model or none. Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below. to determine the total contribution margin with the special order added. Show less A Special Order Contribution margin per unit Star100 Star150 Total Number of units Total contribution margin $ 0 $ 0 S 0 Regular production: Contribution margin per unit Number of units Total contribution margin $ 0 S 0 Total contribution margin for both: 0 Complete this question by Req AI Req A2 Req B1 Req B2 Req C1 Req C2 How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand. Complete this question by entering your answers Ill Req Al Reg A2 Req B1 Req B2 Req C1 Req C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $37.50 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. Special Order es Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per unit Number of units Total contribution margin Total contribution margin for both) Additional direct-labor costs Additional variable overhead Total contribution margin for both (with additional costs) Star100 Star150 Total S 0 $ 0 S 0 $ 0 $ 0 $ 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B1 Req B2 Req C1 Req C2 How much will the profits change in this situation