Gizmo Inc. produces 10,000 wrenches which is at 82% of capacity. Fixed factory overhead is allocated to production. The following estimated costs were provided: Direct material (7/unit) 70,000 Direct labor ($15/hr. x 2 hrs./unit) 300,000 Variable manufacturing overhead ($3/unit) 30,000 Fixed factory overhead costs ($5/unit) 50.000 Total $450,000 Cost per unit - $45 Instructions Answer each of the following independent questions: 1. Gizmo received an order for 2,300 units from a new customer in a country in which Gizmo has never done business. This customer has offered $40 per wrench. Based on relevant costs, is it profitable to entertain this offer? Show computations. 2. All things considered, should Gizmo accept the order? Why or why not? 3. Gizmo received an offer from another company to manufacture and supply the same quality wrenches for $39. Should Gizmo let someone else manufacture all 10,000 widgets and focus only on distribution