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Relevant Decision Making 6 Points The BOD of Marshall Tucker loc. is evaluating two business proposals that have been presented to the firm: (1) Journey

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Relevant Decision Making 6 Points The BOD of Marshall Tucker loc. is evaluating two business proposals that have been presented to the firm: (1) Journey Inc. is proposing to supply Marshall Tucker with 10,000 units of Part 123 which is currently manufactured by Marshall Tucker. Fach unit has a raw material cost of $3.00, a direct labor per unit (part) cost of $8.00, and fixed cost associated with the Part 2123 manufacturing department of $40,000 $15.000 of the fixed cost will continue whether Part 2123 is manufactured or not. Journey has agreed to supply the required number of units (parts) for a total cost of $145,000 Assuming that all other factors are equal (product quality, etc) should Marshall Tucker accept the offen? include a quantification (calculation) supporting your response. (2) Marshall Tucker sells product 497 for $50 per unit, it recelved a proposal for a one time order for 400 units (all 400 must be provided) at a price of $40 per uni. It has the capacity to produce 1,000 units per month but ot this time only produces 700 units per month. Manufacturing the product requires direct labor plus direct material cost or $30 per unit, and shipping cost equal to 68 of the seling price, The part is manufactured in a department that has dedicated (specific to the department) fixed cost of $5,000 per month plus the product absorbs $2,000 per month in allocated fixed corporate overhead costs. Any units sold under the contract for this one time proposed price will not incur any shipping cost since the buyer will pick up the completed units: Should Marshall Tucker accept the offer? Include a quantification (calculation) supponting your response. What will be the difference in the net operating income providod by the product line between accepting the order and not accepting the order

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