Manufacturing costs Direct materials Direct labor Factory overhead Total Selling and administrative Total Costs per unit Manufacturing Selling and administrative Total $450,000 $600,000 315,000 420,000 1,215,000 1,260,000 1,980,000 2,280,000 765,000 780,000 $2,745,000 $3,060,000 $11.00 4.25 $15.25 $9.50 3.25 $12.75 Homework 8 Sales to North American manufacturers are priced at $18 per unit, but the sales manager believes the company should aggressively seek the German business even if it results in a loss of $3.75 per unit. believes obtaining this order would open up several new markets for the company's product. The general manager commented that the company cannot tighten its belt to absorb the $225,000 loss ($3.7 60,000) it would incur if the order is accepted. (a) Determine the financial implications of accepting the order. (Hint: Use the high-low method to determine variable costs per unit.) Accepting the offer will increase profits by $ 225,000 (b) How would your analysis differ if the company were operating at capacity? Determine the advantage or disadvantage of accepting the order under full-capacity circumstances. Use a negative sign with your answer to indicate a net disadvantage, if applicable. $ -1,080,000 x

\begin{tabular}{|c|c|c|} \hline orrectiouteria & 1450,000 & vosesos \\ \hline Dinctioner & 315000 & 40000 \\ \hline Faoprowethitas & & Genow \\ \hline Toul & 1940060 & 2200000 \\ \hline Selling and atminneraver & 36000 & \\ \hline & 1215000 & 11000500 \\ \hline \multicolumn{3}{|l|}{ Coetrpetung } \\ \hline Manulactiones & sirios. & tas \\ \hline Seliceand alsesistrative & 4.15 & \\ \hline Intal & sis:35. & 11213 \\ \hline \end{tabular} 6a, coop 14 would incur it the order is accepted 1,000,009