Required information PR 14-45 (Static) Special Order; Financial and Production Considerations (LO 14-2, 14-4, 14-5) [The following information applies to the questions displayed below.] Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Incorporated. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model number 43 skateboard follow. Additional data: - The normal selling price of model number 43 is $26.50; however, Venus has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. - Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. - Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discarded once the special order is completed. - Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned production activity of 60,000 machine hours (5,000 per month). - Jupiter will allocate $1,800 of existing fixed administrative costs to the order as "... part of the cost of doing business." PR 14-45 (Static) Part 3: What options might Jupiter consider? 3. What options might Jupiter consider if management truly wanted to do business with Venus in hopes of building a long-term relationship with the firm? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available. Completely ignore the additional setup costs and the new device costs, as these are ficed in nature 2 Outsourcing some units Acquiring more machine capacity