Alton Inc. is working at full production capacity producing 32,000 units of a unique product. Manufacturing costs per unit for the product are

Direct materials	$	9
Direct labor		8
Manufacturing overhead		10
Total manufacturing cost per unit	$	27

The unit manufacturing overhead cost is based on a $4 variable cost per unit and $192,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $45 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. SHC has offered to share the nonmanufacturing costs equally with Alton. Alton would sell the modified product to SHC for $30 per unit.

1b.

Should Alton produce the special order for SHC?

2.	Suppose that Alton Inc. had been working at less than full capacity to produce 26,800 units of the product when SHC made the offer. What is the minimum price that Alton should accept for the modified product under these conditions?