Lester-Smith Company manufactures three wood construction components: wood trusses, wood floor joists, and beams. The plant is operating at full capacity. It can produce 200 trusses, 1,000 joists, and 600 beams per month. The company sells everything it produces. Monthly revenues and expenses for the three products are as follows: Sales revenues: lrusses Joists Beams Total revenue $12,000 40,000 90.000 $142.000 Expenses Variable cost: lrusses Joists Beams $10,000 24,000 48,000 $82.000 Total variable cost Fixed cost allocation $4,000 12,000 24.000 $40.000 $122.000 $20.000 lrusses Joists Beams Total fixed cost Total cost Total profit a.) The firm makes wood trusses mainly to satisfy certain customers by offering a full line of wood components. Lately, it had a problem making a profit on the trusses and is considering buying them from another manufacturer at $55 a truss. Based solely on a short-term financial analysis, should the firm buy these trusses or continue to make its own? b.) Lester-Smith has an opportunity to produce an additional 400 beams for a customer at a price of $100 each. If the company accepts this special order, it cannot produce trusses because the plant will be operating at full capacity. Should the firm accept this special order?|