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Cool Air Systems manufactures condensers for industrial air-conditioning units. Each condenser sells for $800. The company is presently operating at capacity of 2,500 condensers per

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Cool Air Systems manufactures condensers for industrial air-conditioning units. Each condenser sells for $800. The company is presently operating at capacity of 2,500 condensers per month. The following table details the costs related to condensed production and sales. Required Answer the following questions independently 1. A special order has been placed by the government maintenance department for 750 condensers at a price of $775 per unit. Variable marketing cost will not be incurred on this order. Determine if this contract should be accepted. (5 Marks) 2. A proposal has been made to fill a one-time only order for 900 air conditioners by assembling them in-house using the company's condensers. The price on the air conditioners is $2,050. The assembly will utilize the existing facilities but capacity of condensers made cannot be increased. Additional cost associated with machinery and assembly cost for this special order are as follows: Should the company assemble the air conditioners? (6) Marks

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