Atwell Yardworks is currently operating at its full production capacity in the manufacture of its portable cathouses.A retailer has approached Atwell requesting a special order of 400 cathouses at a price of $307 each. Atwell normally sells its cathouses for $297 each.Normal costsper cathouseare:

Variable Production Cost................$112

Fixed production costs ...................95(based on 2,400 units per month)

Variable Selling Expenses..............21

If the special order is accepted, there would be an additional production cost per unit of $8 to print the retailer's logo on the front of the each cathouse.

Required:

[Answer format: For Parts A & B: No dollar signs, no commas, no decimals]

A. (2 marks) Compute the contribution margin per cathouse the company is making on its regular sales.

Answer:$Answer

B. (2 marks) Compute the contribution margin per cathouse the company would make on the special order.

Answer:$Answer

C. (1 mark) Regardless of your actual answers for parts A & B and ASSUMING your answer to part B was larger than your answer to part A, the company should: Choose:Answer

accept

reject

the special order.

D. (1 mark) Are there any other factors that might influence the decision on whether or not to accept the special order?Choose:Answer

Yes

No