Schweizer Prodicts produces smart themostas for home heating, ventiation and ar conditioning PiVAC) systens and markets them to vendors who sell them under their own lobel. The cost of one of its thermostats follows. French Rood DIY Stores, a chain of home improvement stores, has asked Schweizer to supply it with 3,000 thermostats for a specia promotion French Roed is planning at one of its larger outlets. French Road has offered to poy $ Sthweizer a unit price of $63.60 per thermostat. The regular selling price is $90. The special order would require same modification to the basic model. These modifications would add $4.60 per unt in material cost $2.60 per unit in iabor cost, and $110 in variable overhead cost Although Schweirer has the capacity to produce the 3,000 units without aflecting its regular production of 45,000 units, a one-time rental of speciel testing equipment to meet French Roed's requirements woula be needed. The equpment rental would be $9,000 and would allow Schweizer to test up to 6,000 units. Required: a. Prepare a schedule to show the impsct of filing the French Alood order on Schweizer's profits for the year. b. Would you recommend that 5ct weizor accept the order? c. Considening only profic, determine the minimum quantity of thermostats in the special order that woud make it proftable. Complete this auestion by entering your aaswers in the tabs below. Prepare a schedule to shew the impact of hilisg the french Abad order on schweirer's profits for the vear Note Enter your answers in thousand rounded to 2 decimal places (lie, 5,400,400 should be entered as 5,400,40), Seiect ostion "Tigher" or 7ower", veeging statur quo as the base. Selea "nony" ir there is no effect. Exercise 4-31 (Algo) Special Order (LO 4-1, 2) Schweizer Products produces smart thermostats for home hesting, ventilotion, and air cond sioning (HVAC) systems and markets them to vendors who sell them under their own label. The cost of one of its thermostats follows: French Rosd DN Stores, a chain of home improvement stores, has asked Schweizer to supply it with 3,000 thermostats for a speciat promotion French Road is planning at one of its larger outiets French Rosd has offered to poy Schweizer a unit price of $63.60 per thermostat. The regular selling price is $90. The speclsl order would require some modification to the basic model. These modifications would add $4.60 per unt in material cest, $260 per unit in lobor cost, and $110 in variable overhead cost. Althoygh Schweirer has the capocity to produce the 3,000 units without affecting its regulsr production of 45.000 unis, a one-time rental of special testing equipment to meet French Rood's requirements would be needed. The equipment rental would be $9,000 and would allow Schweiter to test up to 6.000 upits. Required: b. Prepare a schedule to show the impsct of filing the French Road order on Schwoirer's profits for the year. b. Would you recommend that Schweirer accept the order? c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable. Complete this question by entering your answers in the tabs below. Would you recommend that schweirer accept the order? Exercise 4-31 (Algo) Special Order (LO 4-1, 2) Schweizer Products produces smart thectoostats for home tweating, ventiotlon, and air cond tioning (HVAC) systems; and marhets theat to venders who sell then under thele ewn tabeh. The cost of ene of is thermostats follows. French Rosd DiY Stores, a chain of home improvement stores, has asked Schweizer to supply it with 3,000 thermostots for o special promotion French Road is planning at one of its larget outiets. French Rosd has affered to pay 5 chweizer a unit price af s63 60 per thermostat The nogulsr selling price is $90. The speclal order would require some medification to the basic model, These modifications would add $460 per unit in materal cost, $2.60 per unit in labor cost, and $110 in variable overhesd cest. Atthoygh Schweder has the capacity to produce the 3.000 units without affecting its regular production of 45.000 units, a one-4ime rental of special pesting equlpment to meet French Roadis requirements wouid be needed The equipment rental would be $9,000 and would asce Sclwweirer to test up to 6,000 units Recuired a. Prepsre a schedule to show the impact of fiing the French Rosd ordef on Schweirer's profits for the year. b. Would you recommend that schweser accept the order? c. Considering ony profit determine the minimum quantity of thermostats in the special order that would make it profitable. Cemplete this question by entering yeur answers in the tabs belew. Cens dering orhy proft, determine the minimam quant by of shermostats in the special erder that would make it pechitable, Noter De not reund interinediati calculatiens
