Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor. Required: a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit? a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? b-1. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $60,000 more than it would be without accepting the special order? b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $60,000 more than it would be without accepting the special order? Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit p the distributor? Note: Do not round intermediate calculations
