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Problem #1 (Special order) The Production Division produces and sells 150,000 toy pianos. Maximum capacity is 200,000 toy pianos. one toy piano is as follows

image text in transcribed Problem \#1 (Special order) The Production Division produces and sells 150,000 toy pianos. Maximum capacity is 200,000 toy pianos. one toy piano is as follows (for 150,000 pianos): Other costs incurred by the Production Division are as follows: Currently, the Production Division is selling toy pianos to external customers for $29. The Special_Order Customer wants to buy 50,000 toy pianos. The variable selling expenses are avoided if the toy pianos are sold to the Special_Ordar Customer. Required: 1. Assume that the Production division is capable of producing 200,000 toy pianos per year (so, it has extra capacity to produce additional 50,000 units). What is the minimum amount that the Production Division should accept for the special order? 2. What is Net operating income of the Production Division if they accept the special arder price of $20 ? 3. Now, consider the original facts and assume that the Production Division is already operating at full capacity. What is the minimum amount the Production Division should accept for the special order

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