Exercise 4-39 (Algo) Pricing Decisions (LO 4-1, 2) Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.65 The cost of each unit follows: Materials Labor Variable overhead Fixed overhead ($23,500 per month, 18,800 units per month) Total costs per unit $0.80 0.80 0.30 1.25 $3.15 One of Rutkey's regular customers asked the company to fill a special order of 900 units at a selling price of $2.40 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $3.15 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the Impact of providing the special order of 900 units on Rutkey's profits in addition to the regular production and sales of 18,800 units per month. b. Based solely on the data given, what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a schedule to show the impact of providing the special order of 900 units on Rutkey's profits in addition to the regular production and sales of 18,800 units per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Less variable costs: Materials Labor Variable overhead Status Quo 18,800 Cars Alternative 19,700 Cars Difference Total variable cost $ 0 $ Contribution margin Less: Fixed costs Operating profit < Required A Required B >