Alton Incorporated is working at full production capacity producing 20,000 units of a unique product. Manufacturing costs per unit for the product are as follows: The per-unit manufacturing overhead cost is based on a $4 variable cost per unit and $120,000 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 5,000 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 $4 (not $8 ). Alton would sell the modifled product to $HC for $35 per unit. Required: 1-a. Calculate the contribution margin for 5.000 units for both the current and special order. 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Incorporated had been working at less than full capacity to produce 16,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Calculate the contribution margin for 5,000 units for both the current and special order. estimated nonmanufacturing costs per unit are only $4 (not $8 ). Alton would sell the modified product to SHC for $35 per unit. Required: 1-a. Calculate the contribution margin for 5,000 units for both the current and special order. 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Incorporated had been working at less than full capacity to produce 16,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Calculate the contribution margin for 5,000 units for both the current and special order. Sports Headquarters Company (SHC) has asked Alton to produce 5,000 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 $4 (not $8 ). Alton would sell the modified product to $HC for $35 per unit. Required: 1-a. Calculate the contribution margin for 5,000 units for both the current and special order. 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Incorporated had been working at less than full capacity to produce 16,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Should Alton produce the special order for SHC? Sports Headquarters Company (SHC ) nas asked Alton to produce 5,000 units of a moditication of the new product. Inis modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $4 (not $8 ). Alton would sell the modified product to $HC for $35 per unit. Required: 1-a. Calculate the contribution margin for 5,000 units for both the current and special order. 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Incorporated had been working at less than full capacity to produce 16,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete this question by entering your answers in the tabs below. Suppose that Alton Inc. had been working at less than full capacity to produce 16,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? (Round your answer to 2 decimal places.)
