Greenview Corporation makes several varieties of wooden furniture. It has been approached about producing a special order for Wilderness rocking chairs. A local senior citizens group would use the special$-$order chairs in a newly remodeled activity center.

The senior citizens group offered to buy $80$ Wilderness chairs at a price of $$65$ each. Greenview currently has the excess capacity necessary to accept the offer. A summary of the information related to production of Greenview$$s Wilderness model follows:

Direct materials $ $30$

Direct labor $22$

Variable manufacturing overhead $12$

Fixed manufacturing overhead $11$

Total cost $ $75$

Regular sales price $ $99$

Required:

Compute the incremental profit $($or loss$)$ from accepting the special order.

Should Greenview accept the special order?

Suppose the special order had been to purchase $100$ rocking chairs for $$60$ each. Recompute the incremental profit $($or loss$)$ from accepting the special order.

Assume Greenview is operating at full capacity. Calculate the special$-$order price per unit at which Greenview would be indifferent between accepting or rejecting the special order.