Special-Order Decision, Traditional Analysis, Qualitative Aspects: Feinan Sports, Inc, manufactures sporting equipment, induding weight-ifting gloves. A national sporting goods chain recently submitted a special order for 4,000 pairs of weight-lifting gloves, Feinan Sports was not operating at capscity and could use the extra business. Unfortunately, the order's offering price of $12. 70 per pair was below the cost to produce them. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of accepting the order even though a loss would be incurred; it would avoid the problem of tayoffs and would help maintain the community image of the company. The full cost to produce a pair of weightlifting gioves is presented below. No variable selling of administrative expenses would be associated with the order. Non-unit-level activity costs are a small percentage of total costs and are therefore not considered. 1. Assume that the company would accept the order only it it increased total profits. Should the company accept or reject the order? Provide supporting computations. If required, round your answers to the nearest cent, Enter a loss as a negative amount. 2. Suppose that Feinan Sports has negotiated with the potential customer, and has determined that it can substitute cheaper materials, reducing direct materials cost by 50,80 per unit. In addition, the company's engineers have found a way to reduce direct labor cost by $0.40 per unit. Should the company accept or reject the order? Provide supporting computations. If required, round your answers to the nearest cent. Enter a loss as a negative amount. Total in income: 1 Feedhack + Chech Mr wat 1. Relevant costs (and revenues) are future costs (and revenues) that differ across alternatives. For each cost and revenue given, ask yourself if the company would incur different amounts of the costs, in total, for each altemative. in this case, what are the incremental revenues and costs of the order? 2. For ench cost and revenue, ask yourseif whether the amounts will be different for each alternative. Revise vour work, using the new amounts. What are the incremental revenues and costs of the revised order? Review what you have learned about qualitative factors in the chapteri