PLASTICS TO METALS Plastics The Metals division wishes to purchase 5,000 equipment cases from you. Your cost/unit is as follows: Direct Material $28.00 Direct Labor 17.00 Variable Overhead 34.00 Fixed Overhead 45.00 Total $124.00 Currently, you have enough excess capacity in your plant to produce 5,000 more units per month. You now are selling 12,000 similar units/month to an outside customer, at $174 apiece, but you currently have no additional outside market. The Metals Division manager will be contacting you with an offer to purchase the units. Remember that you may accept or reject, and that the pricing will depend on the CEO's new policy