Speciai-Order Decision, Altematives, Relevant Costs Sequola Paper Products, Inc, manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of eapacitk A chain of drugstores has affered to buy 34,000 boxes of Sequoia's blue-bondered thankyou notes as long as the box can be customired with the drugstore chain's loga. while the normal selling prioe is $5.10 per box, the chain has offered just $3.30 per box. Sequoia can accommodate the special erder without affecting eument sales Unit coet information for a box of thankcyou notes follows: Fixed overhead is 5427,000 per year and wili not be affected by the special order. Normally, there is a commission of 7 percent of price; this will not be paid an the specal order since the drugstore chain is dealing directly with the company. The special order will require add,tonal fixed costs of sis,aod for the deagn and sefue of the machinery to stamp the drugstore chain's loge on each box. Requiredt 1. Which altemative is more cont effective and by how much? 2. What if Sequola Paper Products was operating at capacity and accepting the special order would require rejecting an equivalent cumber of beres sold to existing customers? Which alternative would be better? 2. What if Sequoia Paper Products was operating at capacity and accepting the special order would require rejecting an equivalent number of bexes sald to exinting customers? Which altemative would be better