Jin Manufacturing Corporation provided the following data:

The information presented in the table below is based on the production of 6000 units.

The relevant production range for the data shown in the table below is between 6000 and 60000 unit.

Total Direct material	$120,000
Total direct labor cost	$96,000
Total variable manufacturing overhead cost	$3,000
Total fixed manufacturing cost	$150,000
Total variable selling expense	$6,000
Total fixed selling expense	$80,000
Total Fixed general and administrative expense	$2200,000

The normal selling price of each unit that the company produces is $90,000.

The additional total fixed cost of production of more than 60,000 units is $600,000.

The total variable cost per unit increases by $10.00 when more than 60,000 units are produced.

The cost of not producing less than 3,000 units is an additional fixed cost of $20,000.

Currently, the company has produced and sold 15,000 units during the current year.

The average size of an order from a regular customer is currently between 500 and 1,500 units.

Chicago Manufacturing, A new customer has agreed to purchase 5,000 units at a price of $34.00 per unit.

Chicago has promised to make 4 additional purchases of 10,000 units per order at the same price, if the above purchase is satisfactory.

1. Calculate the contribution margin for the Chicago purchase
2. Do you think we should accept the Chicago Manufacturing Order?
3. Should the management team of Davis negotiate a different price for the 4 additional orders?