Ivanhoe Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 3,500 machine hours. Prices and costs for each product are as follows: Widget Gadget $270 $355 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs* 36 60 16 37 55 69 *Variable manufacturing overhead costs are applied at a rate of $65 per machine hour. Duffy Dog Industries, a potential client, has offered $275 per unit to Ivanhoe for 275 special units. These 275 units would incur the following production costs and time: $10,425 Direct materials Other direct costs Machine hours $5,500 250 Assume that Ivanhoe has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Duffy Dog were accepted. Total contribution margin $ Assume that Ivanhoe is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, e.g. 12.25 and final answers to decimal places, e.g. 125.) Widget Gadget New Order CM per unit CM per machine hour Determine whether Ivanhoe should produce the units for the special order instead of widget or gadget units. Ivanhoe produce the units for the special order instead of widget or gadget units. Assume that Ivanhoe is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Duffy Dog's special order were accepted. Opportunity cost $ Assume that Ivanhoe is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $37,500 to produce Duffy Dog's special order. If the special order is accepted calculate its effect on Ivanhoe's profit. Net profit from doing the special order $