Problem: Module 6 Textbook Problem 2 Learning Objective: 6-1 Identify the characteristics of relevant Information Norman Dowd owns his own taxi, for which he bought a $10,900 permit to operate two years ago. Mr. Dowd eams $32700 a year operating as an independent but has the opportunity to sell the taxi and permit for $39.500 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $30,500 a year for a 40 -hour week. Drwing his own taxi, Mr. Dowd works approximately 55 hours per week if he sells his business, he will invest the $39,500 and can earn a 10 percent return. Required . Determine the opportunty cost of owning and operating the independent business. b. Calculate the earnings of Norman Dowd operating as an independent and the eamings of Norman Dowd working as a dispatcher. Based solely on financial considerations, should Mc. Dowd seil the taxd and accept the position as dispatcher? Problem: Module 6 Textbook Problem 3 Learning Objective: 6.2 Make appropriate special order decislons Vernon Company manufactures a personal computer designed for use in schools and markets it under its own label. Vernon has the capacity to produce 32,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling prtce is $1,660 per unit with no volume discounts. The unit-level costs of the computer's production are $450 for direct matenals, $140 for direct labor, and $110 for indirect unit-tevel manufactuning costs. The total product-and facility-tevel costs incurred by Vernon during the year are expected to be $2,240,000 and $814,000, respectively. Assume that Vetnon receives a special order to produce and sell 3.070 computers at $1,270 each. Required Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order