Question $1$

Alton, Inc. is working at full production capacity producing $20,000$ units of a unique product. Manufacturing costs

per unit for the productare as follows:

Data

Requirements

Should Alton produce the special order for SHC$?$ That is$,$ what is the impact on short$-$term operating profit of

accepting the order?

Suppose that Alton Inc. had been working at less than full capacity to produce $16,000$ units of the productwhen

$SHC$ made the offer. What is the minimum price that Alton should acceptfor the modified productunder those

conditions? Explain.