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Bonita Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,300 machine hours. Prices and costs for each product are as

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Bonita Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,300 machine hours. Prices and costs for each product are as follows: Widget Gadget $253 $333 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 33 38 13 15 33 47 *Variable manufacturing overhead costs are applied at a rate of $43 per machine hour Kennel Industries, a potential client, has offered $253 per unit to Bonita for 253 special units. These 253 units would incur the following production costs and time: Direct materials $8,401 Other direct costs $3,300 Machine hours 228 Assume that Bonita has enough excess capacity to produce the special order, Calculate what the total contribution would be in the special order from Kennel were accepted Total contribution margin $ Assume that Bonita is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, e-8. 12.25 and final answers to decimal places, eg. 125.) Widget Gadget New Order CM per unit CM per machine hour Determine whether Bonita should produce the units for the special order instead of widget or gadget units. Bonita produce the units for the special order instead of widget or gadget units. Assume that Bonita is actually operating at 95% of full capacity, Calculate what the opportunity cost would be if Kennel's special order were accepted. Opportunity cost $ Assume that Bonito is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $35,300 to produce Kennel's special order. If the special order is accepted, calculate its etfect on Bonita's profit Net pront from doing the special orders

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