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Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 4,650 machinehours per month. Each

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Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 4,650 machinehours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. JCt Ltd, a potential customer, has offered to buy 10,000 tool boxes at $8.30 per box, provided that the entire quantity is delivered in two months. The current per-box cost data are as follows: Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable ovethead is $1.70 per direct labour-hour. Without the order, Anchor would have enough business to operate at 3.720 direct labour-hours in each of the next two months. The regular selling price of the tool boxes is $11.30. A sales commission of 50 cents per unit is paid to sales representatives on all regular sales. No additional selling or administrative expenses are anticipated on account of accepting this speclal order and no commissions will be paid on this special order. The production managet is concerned about the labour time that 10,000 boxes would require. She cannot schedule overtime because Anchor has a policy against it. JCL will not accept fewer than 10,000 tool bowes. Therefore, in order to fill the speciat order, it would be necessary for Anchior Company to divert some of its regular sales to the special order. Required: blank - be certoin to enter " 0 " wherever required.)

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