Question One: Rowland Company is producing 10,000 units of (Modem Z) annually at a selling price...

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Question One: Rowland Company is producing 10,000 units of (Modem Z) annually at a selling price of $60 while the cost of production is: Direct Material $15 per unit Direct Labor $8 per unit Variable Overhead $7 per unit Allocated Fixed Overhead Cost $20 per unit (Total $200,000) They have received an offer to sell additional 3000 units for a new customer at selling price of $32. Required: Do the company accept this offer under following independent assumptions: (Show your Calculations 1. The company has excess capacity (the capacity is 15000 units) units 10000 u D-L V.O Fot Sonnen 193009 2. The Company is working in full capacity and has not excess capacity D.L 80000 3 lose increntel 00000 11000 -er because y by 49000 3. The company has limited capacity and to accept the offer it needs to lease another facility for one time by $10,000 Question One: Rowland Company is producing 10,000 units of (Modem Z) annually at a selling price of $60 while the cost of production is: Direct Material $15 per unit Direct Labor $8 per unit Variable Overhead $7 per unit Allocated Fixed Overhead Cost $20 per unit (Total $200,000) They have received an offer to sell additional 3000 units for a new customer at selling price of $32. Required: Do the company accept this offer under following independent assumptions: (Show your Calculations 1. The company has excess capacity (the capacity is 15000 units) units 10000 u D-L V.O Fot Sonnen 193009 2. The Company is working in full capacity and has not excess capacity D.L 80000 3 lose increntel 00000 11000 -er because y by 49000 3. The company has limited capacity and to accept the offer it needs to lease another facility for one time by $10,000