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Oriole Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,400 machine hours. Prices and costs for each product are as
Oriole Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,400 machine hours. Prices and costs for each product are as follows: Selling price per unit $264 $344 Variable costs per unit Direct materials 37 49 Other direct costs 17 26 Variable Manufacturing overhead costs\"= 44 58 * Variable manufacturing overhead costs are applied at a rate of $54 per machine hour. Uli Industries, a potential client, has offered $264 per unit to Oriole for 264 special units. These 264 units would incur the following production costs and time: Direct materials $9,622 Other direct costs $4,400 Machine hours 239 Assume that Oriole has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special orderfrom Uli were accepted. Total contribution margin $ \\:| Assume that Oriole is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, e3. 1225 and nal answers to 0 decimal places. as. 125.] CM per unit $ $ 3 CM per machine hour $ l $ l $ l Determine whether Oriole should produce the units for the special order instead of widget or gadget units. Oriole produce the units for the special order instead of widget or gadget units. Assume that Oriole is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Uli's special order were accepted. Opportunity cost $ Assume that Oriole is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $36,400 to produce Uli's special order. If the special order is accepted, calculate its effect on Oriole's profit. Net profit from doing the special order $
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