Great Outdoors Limited (GOL) I GOL manufactures high-end ski goggles that it sells to boutique ski shop suppliers for $80. Manufacturing and other costs are as follows: Variable costs Direct materials Direct labor Factory overhead Distribution $18 17 Fixed costs per month Selling and administrative Factory overhead $45,000 30,000 7 8 The variable distribution costs are for transportation to suppliers. The current monthly production and sales volume is 6,000 units while they have productive capacity to produce 7,000 units. Consider each of the following situations independently and determine the impact of each situation on monthly profits. Be sure to show supporting computations. You may ignore taxes. d. An Austrian supplier has proposed to place a special, one-time order for 2,500 units at a special price of $70 per unit. The distributor would pay all transportation costs. There would be additional fixed selling and administrative costs of $2,500. Assume overtime production is not possible. e. GOL provides a designer strap for each pair of ski goggles that it manufactures. A Taiwanese manufacturer has offered a one-year contract to supply the straps at a cost of $6 per unit. If GOL accepts the offer, it will be able to reduce variable manufacturing costs by 12%, reduce fixed overhead costs by $2,500 per month and rent some freed-up space for $3,000 per month. f. The goggles also come with four different color inserts that allow the user to change the appearance of the goggles to match their ski outfit. Making the goggles in only one color, without the color inserts, would reduce the cost by $8, and GOL believes the selling price would have to decrease to $70 per unit