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Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit. Simpson Company has approached Andreasen with an offer to buy

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Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit. Simpson Company has approached Andreasen with an offer to buy 7,500 thermostats at a price of $60 each The regular price is $100. Andreasen has the capacity to produce the 7,500 additional units without affecting its current production of 100,000 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $20,000. Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen

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