Problem 1 The Mike's Production produces and sells bikes. Original assumptions: Current Production: 3,000 bikes Maximum Capacity: 6,000 bikes Current selling price per unit: 250 Manufacturing and period costs are as follows: Manufacturing costs: DM/unit =$23 Dqunit = $15 VOprer unit =$12 Total xed direct MOH: $220,000 Total xed common MOH: $100,000 Period Costs: SG&A xed (common)=$200,000 Variable selling commission per unit=$1 (only for units sold through regular, not special order) Reg uired: 1. If Mike's Production decides to outsource (purchase instead of make) 3,000 bikes, what is the maximum purchase price per bike that Mike's Production should pay to be no worse off nancially? Back to the original assumptions. A national sporting goods chain recently submitted a special order for 1,000 bikes. Mike's Production is not operating at capacity and could use the extra business. If special order is 1,000 units, what is the minimum price so that the company is no worse oft? If special order is 4,000 units, what is the minimum price so that the company is no worse off