Special Order Decision (Independent from the Outsourcing Decision) 4. Oakey has the capacity of producing 7.500 doorknobs in the factory, and is currently producing 5,000 doorknobs for internal use on its doors. An overseas customer offers to buy 1,000 doorknobs from Oakey for $3.5 each. The customer would like Oakey to engrave its logo on the doorknobs, which will cause the direct labor cost to increase by $0.5. This order will also require a special international shipping of $200 Required: What is the impact on profit if this special order is accepted, and should Oakey accept this order? Outsourcing and Special Order Decisions 3. Oakey Doors Company currently produces the doorknobs for the doors it makes and sells. The monthly cost of producing 5,000 doorknobs is as follows: Cost per unit Direct Materials Direct Labor Variable Overhead Salary of doorknobs production supervisor lhe ore Depreciation on manufacturing equipment Allocated fixed factory-level overhead 1.207 5a 0.20 yoao 750 3,750 3,750 0.75 S 4.30 21, 50 3,250 Total per unit cost Outsourcing Decision (Independent from the Special Order Decision) Dokey Company has offered to sell comparable doorknobs to Oakey for $3.8 each. If Oakey purchases the doorknobs from Dokey, the doorknobs production supervisor will no longer be employed. The manufacturing equipment has no re-sale value and has no other use in the factory. After a careful analysis, Oakey determined that 10% of the fixed factory-level overhead will be eliminated, if the doorknobs are purchased. (1) If Oakey purchases the doorknobs from Dokey, what is the impact on profit and should Oakey purchase from Dokey? Incrse$750 Ookey shous (2) For $7.500 per month, Oakey could lease the manufacturing space to another company. What will be the impact on profit and should Oakey purchases the doorknobs from Dokey and lease the space? Special Order Decision (Independent from the Outsourcing Decision) 4. Oakey has the capacity of producing 7.500 doorknobs in the factory, and is currently producing 5,000 doorknobs for internal use on its doors. An overseas customer offers to buy 1,000 doorknobs from Oakey for $3.5 each. The customer would like Oakey to engrave its logo on the doorknobs, which will cause the direct labor cost to increase by $O.5. This order will also require a special international shipping of $200 Required: What is the impact on profit if this special order is accepted, and should Oakey accept this order