Schweizer Products produces smart thermostats for home heating, ventilation, and air conditioning (HVAC) systems. and markets them to vendors who sell them under their own label. The cost of one of its thermostats follows. French Road DIY Stores, a chain of home improvement stores, has asked Schweizer to supply it with 3,000 thermostats for a special promotion French food is planning at one of its larger outlets. French Road has offered to pay Schweizer a unit price of $63.60 per thermostat. The regular seiling price is $90. The special order would require some modification to the basic model. These modifications would add $4.60 per unit in material cost $2.60 per unit in labor cost, and $1.10 in variable overhead cost. Although Schweizer has the capocity to produce the 3,000 units without affecting its regulsr production of 45,000 units, a one-time rental of special testing equipment to meet French Road's requirements would be needed. The equipment rental would be $9,000 and would allow Schweizer to test up to 6,000 units. Required: a. Prepare a schedule to show the impact of filling the Fiench Road order on Schweizer's profits for the year. b. Would you recommend that Schweizer accept the order? c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable. o. Prepare a schedule to show the impact of filling the French Road order on Schweizer's profits for the year. b. Would you recommend that Schweizer 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. Prepare a schedule to show the impact of filling the French Road order on Schweizer's profits for the year. Note: Enter your answery in thousands rounded to 2 decimal places. { i.e., 5,400,400 should be entered as 5,400.40}. 50lect option "higher" or "lower", keeping status Quo as the base. Select "none" if there is no effect. French Road DrY Stores, a chain of home improvement stores, has asked Schweizer to supply it with 3,000 thermostats for a special promotion French Road is planning at one of its larger outlets. French Road has offered to pay Schweizer a unit price of $63.60 per thermostat. The regular selling price is $90. The special order would require some modification to the basic model, These modifications would add $4.60 per unit in material cost, $2.60 per unit in labor cost, and $110 in variable overhead cost. Although Schweizer has the capacty to produce the 3,000 units without affecting its regular production of 45,000 units, a one-time rental of special testing equipment to meet French Road's requirements would be needed. The equipment rental would be $9,000 and would allow Schweizer to test up to 6,000 units. Required: a. Prepare a schedule to show the impact of filing the French Road order on Schweizer's profits for the year, b. Would you recommend that Schweizer accept the order? c. Considering only profit determine the minmum quantity of thermostats in the special order that would make it profitable. Complete this question by entering your answers in the tabs below. Considering oniy profit, determine the minimum quantity of thermostats in the special order that would make it profitable. Note: Do not round intermediate calculations
