Alton Inc. is working at full production capacity producing 27,000 units of a unique product. Manufacturing costs per unit for the product are as follows:

Direct materials	$	8
Direct labor		7
Manufacturing overhead		9
Total manufacturing cost per unit	$	24

The per-unit manufacturing overhead cost is based on a $6 variable cost per unit and $81,000 fixed costs. The nonmanufacturing costs, all variable, are $10 per unit, and the sales price is $47 per unit.

Sports Headquarters Company (SHC) has asked Alton to produce 6,400 units of a modification of the new product. This modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $5 (not $10). Alton would sell the modified product to SHC for $37 per unit.

Required

1-a. Calculate the contribution margin for 6,400 units for both the current and special order.

1-b. Should Alton produce the special order for SHC?

2. Suppose that Alton Inc. had been working at less than full capacity to produce 22,300 units of the product when SHC made the offer. What is the contribution margin loss in regular sales if Alton accepts the special order (i.e. Alton's opportunity costs)? (Use an absolute number and do not add a negative sign. Put "0" if there is no loss in regular sales.)

Req 1A Req 1B Reg 2 Calculate the contribution margin for 6,400 units for both the ci Current Special Order $ 47 $ 37 $ 16 $ 11 Revenue per Unit Variable Cost per Unit Contribution Margin per Unit Total Contribution Margin $ $ $ 31 26 $ 198,400 $ 166,400 Req 1A Req 1B Req 2 Suppose that Alton Inc. had been working at less than full capacity the offer. What is the contribution margin loss in regular sales if Al costs)? (Use an absolute number and do not add a negative sign. Loss in Regular Sales $ 8.23