Current Designs CD? Current Designs faces a number of important decisions that require incremental analysis. Con sider cach of the following is independently Situation Recently, Mike Cichanowski, want and CEO of Current Designs, received a phone call from the presi dent of a brewing company. He was calling to inquire about the possibility of Current Designs producing "Boting cooler" for a promotion his company was planning. These coolers seemblea kuyak bat ire about one-third the site. They seed to fout food and beverages while puddling down the tiveron a weekend te trip. The company would be interested in purchasing 100 coolers for the upcoming Summe. It is willing to pay $250 percooler The brewing company would pick up the coolen upon completion of the order Mie met with Diane Buswell, comer, to identify how much it would cost Current Designs 10 produce the coole. Are carefully the following costs were entified Direct materials 38it Variable overhead Direct labor Sanit Fixed over $1.000 Current Designs would be able to modify existing mold to produce the cool. The cost of these modifications would be approximately $2.000 Instructions 2. Prepare an incremental analysis to determine whether Current Designs should accept this special order to produce the coolers Discus additional factors that Mike and Diane should come if Current Design is curred operating at full capacity Situation 2 Current Designs is always working to identify ways to increase efficiency while becoming more mentally conscious. During a recent beining session, cet employee wed to Diane Burel controller, that the company should consider replacing the current modes way to savings from reduced hergy consumption. The oven operates on algat, ring 17.000 them of natural gas for an entire yea. Aw.energy-elicitromold over would operate on 15.000 theme of natural gas for an entire year. After king out price quotes from a few suppliers, in determined that it would cost approximately $250,000 to purchase a new energy efficient romoldove. She determine that the expected useful life of the new on would be 10 years, and it would have to residual verde end of its useful life. Current Designs would be able to sell the renown for 510.000 Instructions 1. Prepare an incremental analysis to determine if ure Design should purchase the new rulmeld even, stiming that the average price for atual gas over the next 10 years will be 50 65 perthern 1. Diane is concerned that algas peces might increase ata fuerte over the next 10 years. If the company projects that the reage natural gas price of the next 10 years could be as high as 50:45 per therm, discuss tow that might change your conclusion in () Situation > One of Current Desigual competitive advantages is found in the inity of its owner CEO, Mike Cichowski. His involvement in the design of kayak molde production techniques has led to Car rent Designs being recognized as an industry leader in the design and production of kayaks. This ingre ity was evident in an improved design of one of the most important components of kayak, the set The "Revolution Seating System is akad. rotating is set that gives matched, full-contact under le support. It is quickly adjustable with a leve lacks that allows for customizable position that matimines comfort for the rider Hiving designed the Revolution Stating System.Care Detit me now decide whether 10 produce the nationally or buy them from as cotide supplier The cost for Current Designs to produce the seats are al follow Direct materiale 20 Director 315 Variable overhead 1 Fixed overhead 320,000 Current Design will need to produce 1.000 sest this year 23 of the fired bead will be avoided it the seats are purchased from an outside vendor. After soliciting price from outside suppose com pany determined that it will com 550 to purchase from an outside Instructions Prepare an incremental analysis showing whether Care Designs should make or buy the "Have lunos Seating System Would you werin (a) che de producte capacity sed by a nating the wand be used to produce income of 570.0001