Car$-$It financial information

Production data and income statement $($unaudited$)$

Based on the $12$ months ending September $30,2018$

Revenue and costs per unit

Basic Deluxe Super Deluxe Frame Total

Hours available $2,4301,7285407025,400$

Direct labour hours$/$unit $10121510$

Revenue

Unit price $$900$ $$1,000$ $$1,200$ $$600$

COGS$/$unit

Frame $150150200200$

Parts $3003003500$

Materials $150150200200$

Direct labour cost $200240300200$

Overhead cost $10010010090$

Gross margin$/$unit $$0$ $$60$ $$50-$$$90$

Units sold $2431443670$

$$0$ $$8,640$ $$1,800-$$$6,318$ $$4,122$

Selling costs $4,000$

General and admin. Expenses $18,000$

Pre $-$tax profit $($loss$)-$$$17,878$

Ron has also been approached by a retail store that offered a three$-$year contract to

Ron. The contract requires the following:

$500$ frames each year for a price of $$900$ each.

$1,000$ units of Basic for a price of $$1,100$ per unit, and $1,000$ units of Deluxe for a

price of $$1,200$ each.

In order to fulfill this order, Ron will need to outsource the production of the Basic and

Deluxe. Ron has contacted a facility in China and they offered to produce the required

units for a cost of $$1,000$ for Basic, $$1,100$ for Deluxe, and $$850$ for the frame. These

costs include any expenses associated with shipping the cars to Car$-$It$.$ This offer will

free all of the capacity of the company to produce $155$ units of Super Deluxe at a cost

of $$1,150$ and a selling price$$of$$$$1,200.$ Show proper changes in excel calculation with respect to question in proper format.