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Indigo Inc manufactures two electronic products, widgets and gadgets, and has a capacity of 3.200 machine hours. Prices and costs for each product are as

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Indigo Inc manufactures two electronic products, widgets and gadgets, and has a capacity of 3.200 machine hours. Prices and costs for each product are as follows: Gadget Widget $262 $352 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 33 57 13 34 52 66 "Variable manufacturing overhead costs are applied at a rate of $62 per machine hour. Handley Industries, a potential client, hus offered $272 per unit to Indigo for 277 special units. These 272 units would incarthe following production costs and time: Direct materials $10.222 $5.200 Other direct costs Machine hours 247 ./15 Tii Assume that Indigo has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Handley were accepted Total contribution margin Assume that Indigo is currently operating at full capacity Calculate the contribution margin per unit and per machine hour, (Round machine hours to 2 decimal places, s. 1225 and final answers to decimal places, e$ 125) Widget Gadget New Order $ $ CM per unit $ $ CM per machine hour Determine whether Indigo should produce the units for the special order instead of widget or gadget units. Determine whether Indigo should produce the units for the special order instead of widget or gadget units. Indigo produce the units for the special order instead of widget or gadget units. Assume that Indigo is actually operating at 95% of full capacity Calculate what the opportunity cost would be if Handley's special order were accepted. $ Opportunity cost Assume that Indigo is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $37.200 to produce Handley's special order. If the special order is accepted. calculate its effect on indigo's profit. Opportunity cost $ Assume that Indigo is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $37.200 to produce Handley's special order. If the special order is accepted calculate its effect on Indigo's profit. $ Net profit from doing the special order Attempts of 1 used Submit Answer Sovetoe Later @ G

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