Mason Inc. is working at full production capacity producing 29,000 units of unique product. Manufacturing cost per unit for the product is as follow:

1. Direct Material $10
2. Direct Labor $9
3. Manufacturing Overhead $11
4. Total Manufacturing Cost Per Unit $30

The per unit manufacturing overhead cost isbased upon $5 variable cost per unit and $174,000 fixed cost. The non-manufacturingcosts, are all variable, are $8 per unit, and the sale price is $45 per unit. Sports Headquarters Company has asked Mason Inc to produce 6,500 units of a modification of the new product.This modification would require the same manufacturing process. However because of the nature of the proposed sale, the estimated non-manufacturingcosts per units are only $4 (not $8). Manson Inc would sell the product to Sports Headquarters for $35 per unit.

Required:

1(a) Calculate the contribution margin for 65,00 units for both the current and the special order.

1(b) Should Mason Inc produce the special order for Sports Headquarters? (yes or no)

2. Supposethat Mason Inc had been working at less than full capacity to produce 24,100 units of the product when Sports Headquarters made the offer.What is the minimum price per unit that Mason Inc should accept for the modified product under these conditions. Round answer to 2 decimal places