Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 23,000 medals each month; current monthly production is 10,000 medals. The company normally charges $82 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials 397,500 Direct labor 127,200 Selling and administrative 20,600 Fixed costs: Manufacturing 118,800 Selling and administrative 65,000 The company has just received a special one-time order for 400 medals at $63 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. However, for this special one-time order a specific cutter machine to emboss logo will be required which may be rented for $ 1500 for required period. Assume that direct labor is a variable cost. Required: Calculate Cost of single medal produced in this Special Order. Should the company accept this special order? Write only Yes or No Calculate Advantage or Disadvantage of Accepting this Special Order (in case of disadvantage/ loss write in bracket) points Save Answer Raveen Products sells camping equipment. One of the company's products, a camp lantern, sells for $100 per unit. They managed to sell 10,000 lanterns per month. Variable expenses are $65 per lantern, and fixed expenses associated with the lantern total $140,000 per month. Required: 1. Compute the company's break-even point in number of lanterns. 2. Compute the company's break-even point in total sales dollars. 3. Compute the company's Margin of Safety in sales dollar. 4. Compute the company's Margin of Safety in percentage. 5. If the variable expenses per lantern increase as a percentage of the selling price, Will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) Note: Write Higher or Lower in provided Box At present, the company is selling 10,000 lanterns per month. The sales manager is convinced that a 15% reduction in the selling price will result in a 45% increase in the number of lanterns sold each month. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 6. Calculate Contribution Margin Amount of Present Operating Conditions 7. Calculate Net Profit of Present Operating Conditions 8. Calculate Contribution Margin Amount after Proposed Changes 9. Calculate Net Profit after Proposed Changes 10. Refer to the data of proposed changes of sales manager above. How many lanterns (Quantity only) would have to be sold at the new selling price to yield a minimum net operating income of $80,000 per m onth