REQUIRED:

1. Suppose Sage is working at 85% of its capacity. Should Sage accept this special order in full? (If an answer is zero, please enter 0. Do not leave any fields blank.)

2. Suppose Sage is working at 90% of its capacity. Should Sage accept this special order in full? (If an answer is zero, please enter 0. Do not leave any fields blank.)

Sage Company manufactures printers and sells them for $143 each. Sage's capacity is 21,000 units per year. The following are the costs for making one unit: Direct materials $26 Direct labour 52 Variable manufacturing overhead 13 18 Fixed manufacturing overhead* Variable marketing and selling Fixed marketing and selling 11 4.20 *Fixed costs per unit are based on the total capacity of 21,000 units. Tinto Printer Wholesaler would like to place a special one-time order of 5,250 printers, and offers to pay $116 per unit. This special order will incur one-time manufacturing fixed costs of $45,150. Since Tinto places the order directly with Sage, there will be no variable marketing and selling expenses incurred