Requlred Informatlon

$[$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 $7,540$ medals. The company normally

charges $$235$ per medal. Variable costs and fixed costs for the current activity level follow:

Award Plus has just received a special one$-$time order for $2,460$ medals at $$125$ 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 LePenn, who is the controller, that they request competitive bids from

vendors for the raw materials because the current quote seems high. LePenn 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.

Requlred:

Calculate both the old $($i$.$e$.,$ prior to the special order$)$ average cost per unit and the revised average cost per unit, including the effect

of the special sales order.

What is the short$-$term effect on operating profit if Award Plus Company accepts the special sales order?

What is the breakeven selling price per unit for the special sales order?

Complete this question by entering your answers in the tabs below.

Required $1$

Calculate both the old $($i$.$e$.,$ prior to the special order$)$ average cost per unit and the revised average cost per unit, including

the effect of the special sales order. $($Round your answers to $2$ decimal places.$)$

Old average cost per unit

Recalculated average cost per unit