Ruby Corporation makes shelves that it sells for $$37$ each. At capacity, the company can produce $54,000$ shelves a year. The costs of producing and selling $54,000$ shelves are as follows:

Cost per shelf Total Costs

Direct Materials $$14$ $ $756,000$

Direct Labor $4216,000$

Variable Manufacturing Overhead $2108,000$

Fixed Manufacturing Overhead $5270,000$

Variable Selling Exp $2108,000$

Fixed Selling Exp $3162,000$

Total costs $$30$ $$1,620,000$

$1.$ Suppose Ruby is currently producing and selling $44,000$ shelves. At this level of production and sales, its fixed costs are the same as given in the preceding table. XYZ Corporation wants to place a one$-$time special order for $10,000$ shelves at $$21$ each. Ruby will incur no variable selling costs for this special order. Should Ruby accept this one$-$time special order? Show your calculations.

$2.$ Now suppose Ruby is currently producing and selling $54,000$ shelves. If Ruby accepts XYZ$$s offer, it will have to sell $10,000$ fewer shelves to its regular customers. $($a$)$ On financial considerations alone, should Ruby accept this one$-$time special order? Show your calculations. $($b$)$ On financial considerations alone, at what price would Ruby be indifferent between accepting the special order and continuing to sell to its regular customers at $$37$ per shelf. $($c$)$ What other factors should Rubyconsider in deciding whether to accept the one$-$time special order?Ruby Corporation makes shelves that it sells for $$37$ each. At capacity, the company can produce $54,000$ shelves a year. The costs of producing and selling $54,000$ shelves are as follows:

$\backslash$table$[[,$Cost per shelf,Total Costs,$],[$Direct Materials,$$14,$$$756,000,],[$Direct Labor,$4,216,000,],[\backslash$table$[[$Variable Manufacturing$],[$Overhead$]],2,108,000,],[\backslash$table$[[$Fixed Manufacturing$],[$Overhead$]],2,3,270,000],[$Variable Selling Exp,$$30,108,000,],[$Fixed Selling Exp,,$162,000,],[$Total costs,,$$1,620,000,]]$

Suppose Ruby is currently producing and selling $44,000$ shelves. At this level of production and sales, its fixed costs are the same as given in the preceding table. XYZ Corporation wants to place a one$-$time special order for $10,000$ shelves at $$21$ each. Ruby will incur no variable selling costs for this special order. Should Ruby accept this one$-$time special order? Show your calculations.

Now suppose Ruby is currently producing and selling $54,000$ shelves. If Ruby accepts XYZ$\text{'}$s offer, it will have to sell $10,000$ fewer shelves to its regular customers. $($a$)$ On financial considerations alone, should Ruby accept this one$-$time special order? Show your calculations. $($b$)$ On financial considerations alone, at what price would Ruby be indifferent between accepting the special order and continuing to sell to its regular customers at $$37$ per shelf. $($c$)$ What other factors should Rubyconsider in deciding whether to accept the one$-$time special order?