Part 2. Special Order Pete's Pizza makes the best pizzas in town. Based on Pete's current volume, the price and cost breakdown is outlined below. The local high school has asked Pete to be their sole pizza provider for a large event and has offered to order 500 pizzas at a special price. $ Normal sales price Special price Direct materials Direct labor Variable overhead Fixed overhead Per unit 10.00 7.40 3.00 1.00 0.50 3.40 Relevant? Yes Yes Yes No No Yes Should Pete accept the order in either of the following scenarios? A. Pete has capacity to produce these pizzas with no additional investments. B. Pete would need to rent a piece of equipment to accommodate the order. The rent would cost Pete: $ 1,498 Scenario A B Enter "=0" in the cell for any cost not relevant to the decision. 5001 500 Number of pizzas ordered Sales revenue Variable costs Direct materials Direct labor Variable overhead Fixed overhead Total costs Expected change in operating income Should Pete accept the order? Part 3. Product Line Elimination Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement for each product line. Allocate total fixed costs to each shoe type based on units as a percent of total units (i.e. use units sold as the cost driver). Boots Sneakers Sandals Total Relevant? Sales (units) 6,000 15,000 4,000 25,000 Price $ 50.00 $ 25.00 $ 5.00