PLEASE ANSWER THESE 2 QUESTIONS ASAP

Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 26,000 medals each month; current monthly production is 10,000 medals. The company normally charges $94 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $455, 700 Direct labor $145, 800 Selling and administrative $ 23, 600 Fixed costs: Manufacturing $136, 100 Selling and administrative $ 74, 500 The company has just received a special one-time order for 400 medals at $82 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost. Required: Should the company accept this special order? Accepted Not acceptedBed & Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows: Department Total. Ha rdwa re Linens Sales $4,170,000 $3,100,000 $ 1,070,000 Variable expenses 1,358,000 954,000 404,000 Contribution margin 2,812,000 2,146,000 666,000 Fixed expenses 2,240,000 1,400,000 840,000 Net ope rating income (1055) $ 572.0% $ 746.000 $ (174, 000) A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 15% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? ::|