Moore Company manufactures and sells a single product called a Lop. Operating at capacity, the company can produce and sell

$30,000$ Lops per year. Costs associated with this level of production and sales are given below:

points awarded

The Lops normally sell for $$50$ each. Fixed manufacturing overhead is constant at $$270,000$ per year within the range of $25,000$

through $30,000$ Lops per year.

Requirect.

Assume that due to a recession, Moore Company expects to sell only $25,000$ Lops through regular channels next year. A large retail

chain has offered to purchase $5,000$ Lops if Moore is willing to accept a $16\%$ discount off the regular price. There would be no sales

commissions on this order, so variable selling expenses would be slashed by $75\%.$ However, Moore Company would have to purchase

a special machine to engrave the retail chain's name on the $5,000$ units. This machine would cost $$10,000.$ Moore Company has no

assurance that the retail chain will purchase additional units in the future. Calculate the net increase$/$decrease in profits next year if this

special order is accepted.

Refer to the original data. Assume again that Moore Company expects to sell only $25,000$ Lops through regular channels next year.

The provincial government would like to make a one$-$time$-$only purchase of $5,000$ Lops. The government would pay a fixed fee of

$$1\mathrm{.}80$ per Lop, and it would reimburse Moore Company for all costs of production $($variable and fixed$)$ associated with the units. Since

the government would pick up the Lops with its own trucks, there would be no variable selling expenses associated with this order. If

Moore Company accepts the order, by how much will profits increase or decrease for the year?

Assume the same situation as that described in $(2)$ above, except that the company expects to sell $30,000$ Lops through regular

channels next year, so accepting the government's order would require giving up regular sales of $5,000$ Lops. If the government's

order is accepted, by how much will profits increase or decrease from what they would be if the $5,000$ Lops were sold through regular

channels?