Memo from Sales Director March 16, Year 3 To: Johnny Court, Comptroller From: Eddie Measure, Sales Director RE: Sales of heated thermals EXHIBITS Johnny, Memo from Production Supervisor Memo from Sales Director We sell our heated thermal sets for $87.50 each. We currently purchase and sell 450 sets per year. Cost Sheet Eddie Scroll down to complete all parts of this task. Cost Sheet Johnny Count, Comptroller for Heated Thermals, Inc., is evaluating whether to fulfill a special order request received from the Production Supervisor. You have been asked to provide him with key numbers for his analysis. Enter the appropriate amounts in the associated cells using the information provided in the exhibits. Enter all amounts as positive values. Enter amounts as currency to the nearest cent. For items 3, 7, and 8 , select from the option list provided the best choice. Memo from Production Supervisor Heated Thermals, Inc. Memo from Production Supervisor March 15, Year 3 To: Johnny Court, Comptroller From: George Pound, Production Supervisor RE: Special order for 75 sets of heated thermals Our heated thermal sets that are made in black, gray, and white are selling extremely well. We have received a $3,750 special order request for 75 sets to be made in fuchsia. We are now paying a native corporation in British Columbia $65 each to produce our heated thermals. They have the capacity to produce 500 sets a year. I have checked and our variable costs for this special order would be $42.50 per heated thermal set. That would save us $22.50 each, increasing income by $1,688 per year. What do you think? George