Problem 4-53 (Algo) Special Order (LO 4-1, 2) points Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Star100 and the Star 150, which differ in terms of capabilities. The following information is available. Star 150 Star 100 $ 75 Pent Raforoncos Costa per Unit Direct materials Direct labor Variable Ovechead Fixed overhead Total cost per unit Price Units sold 20 100 235 $ 4.000 The average wage rate is $25 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 10,400 direct labor-hours Required: a. A nationwide car sharing service has offered to buy 2.600 Star 100 systems and 2.600 Star 150 systems of the price is own Required: a. A nationwide car-sharing service has offered to buy 2,600 Star 100 systems and 2,600 Star150 systems if the price is lowered to $210 and $260, respectively, per unit. a-1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems? a-2. Complete the following table to determine the differential profit increase for decrease) ir Unter accepts this proposal Prices on regular sales will remain the same b-1. Suppose that the car-sharing has offered instead to buy 3.600 each of the two models at $210 and $260, respectively. This customer will purchase the 3.600 units of each model only in an all-or nothing deal. That is, Unter must provide all 3.600 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added -2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production Capacity to meet the extra demand 1. Assume that in the situation presented in requirement b1 the plant can work overtime. Direct labor costs for the overtime production increased to $3750 per hour Variable overhead costs for overtime production are 56 per hour more than for normal production Complete the table below to determine the total contribution margin c-2. How much will the profits change in this situation