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Baby Center Ltd. has been approached by the government, wm approached by the government, which is seeking to buy 12,000 high chairs for its day

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Baby Center Ltd. has been approached by the government, wm approached by the government, which is seeking to buy 12,000 high chairs for its day care centers in 2020. The proposed government contract states that the way baby Center a price of $52 per hinh chair. If Baby Center decides to accept they would avoid packaging costs for this contract as well as all variable se ative costs. The company's capacity is limited to only 40,000 units. If they accept the em contract, they will need to increase their capacity by renting an additional machine. Herer to page 1 for the company's estimated cost data and additional machine rente iment contract states that the government would y Center decides to accept this special order, Assume that Baby Center does not adopt the proposed Marketing Plan and that the production and sales level without the government contract is expected to be 30,000 high chairs for 2020 1. Prepare an analysis below to determine the incremental net income or net loss that Baby Center would recognize if they accept this special order. 2. Should Baby Center accept or reject the government contract? Baby Center Ltd. has been approached by the government, wm approached by the government, which is seeking to buy 12,000 high chairs for its day care centers in 2020. The proposed government contract states that the way baby Center a price of $52 per hinh chair. If Baby Center decides to accept they would avoid packaging costs for this contract as well as all variable se ative costs. The company's capacity is limited to only 40,000 units. If they accept the em contract, they will need to increase their capacity by renting an additional machine. Herer to page 1 for the company's estimated cost data and additional machine rente iment contract states that the government would y Center decides to accept this special order, Assume that Baby Center does not adopt the proposed Marketing Plan and that the production and sales level without the government contract is expected to be 30,000 high chairs for 2020 1. Prepare an analysis below to determine the incremental net income or net loss that Baby Center would recognize if they accept this special order. 2. Should Baby Center accept or reject the government contract

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