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Anchor Company manufactures a varicty of tool bexes. The firm is currently cperasing ot 80% of as full copacity of 6.300 machinehours per month. Eoch

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Anchor Company manufactures a varicty of tool bexes. The firm is currently cperasing ot 80% of as full copacity of 6.300 machinehours per month. Eoch unit requires 30 minutes of machine time. Its sales manager has been lopking for speciat crders to make productive use of the excess capacity. JCL thi, a potential customet, has offered to bwy 10.000 tool bowes at $1270 per box, prowided that the entire quantity is delivered in two months. The curtent perbok coss ifsta ace as follows: Both fixed and variable overhead are aliocated using oicect labouthours as a base. Variabse overheod is $2.80 per direct labour.houe. Without the order, Anchor would have enough business to operate at 5,090 direct labour hours in each of the next two months. The regular selling price of the tool bowes is 51570 . A sales commisslon of 50 cents per unt is paid to sales repretentatives on all regular sales. No additonal seling of administrative expeeses are anticipated on account ef accepting this special order and no commissions will be pald on this special order. The production manoger is concerned about the labour time that 10.000 bores would require. she cannot schedule overtitie because Anchor has a policy ogsinst it. 1Cl will not accept fewer than 10.000 tool bowes. Therefore, in order to fil the special cedec, it would be necessary for Anchor Company to divert some of its regular soles to the special ordec. Required: 1. S. Piepare contribution margin income statements foe the two-monsth period both with and without the special ordec (Leave no cells blank - be certain to enter " 0 " wherever required) 1-b. Based on financial considerations, should Anchor accept the order? Accept Not Accept 2. This part of the question is not part of your Connect assignment

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