question 10

Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month; current monthly production is 7,680 medals. The company normally charges $270 per medal. Variable costs and rixed costs for the current activity level follow: Award Plus has just received a special one-time order for 2,320 medals at $160 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Senna, a management accountant with Award Plus, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Senna suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw materials because the current quote seems high. LePenn insisted that the prices are in line with those of other vendors and toid her that she was not to discuss her observations with anyone else. Senna later discovered that LePenn is a brother-in-taw of the owner of the current raw materials supply vendor. Required: 1. Calculate both the old (i.e., prior to the special order) average cost per unit and the revised average cost per unit, including the effect of the special sales order. 2. What is the short-term effect on operating profit if Award Plus Company accepts the special sales order? 3. What is the breakeven selling price per unit for the special sales order? Complete this question by entering your answers in the tabs below. Calculate both the ald (l.e., prior to the special order) average cost per unit and the revised average cost per unit, including the effect of the special sales order. (Round your answers to 2 decimal ploce..)