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Required information Problem 11-32 (Algo) Special Order (LO 11-2, 11-8) (The following information applies to the questions displayed below) Award Plus Company manufactures medals for
Required information Problem 11-32 (Algo) Special Order (LO 11-2, 11-8) (The following information applies to the questions displayed below) 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 7,640 medals. The company normally charges $260 per medal. Variable costs and fixed costs for the current activity level follow, Current Product Costs Variable costs Manufacturing Labor Material Marketing Total variable costs Fixed costs Manufacturing Marketing Total fixed costs Total costs $ 382,000 305,600 191.000 $ 878,600 $ 282,000 232,000 $ 514,000 $ 1,392,600 Award Plus has just received a special one-time order for 2,360 medals at $150 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 Le Penn, who is the controller, that they request competitive bids from vendors for the raw materials because the current quote seems high ILePenn insisted that the prices are in line with those of other vendors and told her that she was not to discuss her observations with anyone else. Senna later discovered that LePenn is a brother-in-law of the owner of the current raw materials supply vendor. 4. Discuss at least three other considerations that Cathy Senna should include in her analysis of the special order. 5. Explain how Cathy Senna should try to resolve the ethical conflict arisingput of the controller's insistence that the company avoid competitive bidding
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