Question 1 of 30 > - / 10 View Policies Current Attempt in Progress Sheridan Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,100 machine hours. Prices and costs for each product are as follows: Widget Gadget Selling price per unit $251 $331 Variable costs per unit Direct materials 31 36 Other direct costs 11 13 Variable Manufacturing overhead costs 31 45 Variable manufacturing overhead costs are applied at a rate of $41 per machine hour. Dynatech Industries, a potential client, has offered $251 per unit to Sheridan for 250 special units. These 250 units would incur the following production costs and time: $8,525 Direct materials Other direct costs $3,500 Machine hours 225 Assume that Sheridan has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Dynatech were accepted. Total contribution margin $ Assume that Sheridan is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, eg. 12.25 and final answers to decimal places, eg. 125.) Widget Gadget New Order CM per unit $ $ $ CM per machine hour $ $ $ Determine whether Sheridan should produce the units for the special order instead of widget or gadget units. Sheridan produce the units for the special order instead of widget or gadget units. Assume that Sheridan is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Dynatech's special order were accepted. Opportunity cost $ Assume that Sheridan is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $35,100 to produce Dynatech's special order. If the special order is accepted, calculate its effect on Sheridan's profit. Net profit from doing the special order $