Summative Assessment [due Day /] Saved Nardin Outfitters has a capacity to produce 20,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,750 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $ 610 175 165 135 $ 1,085 The company has received a special order for 2,200 tents at a price of $770 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $62 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case Required: $ 770 610 175 62 135 $ (212) a. What is the impact on profit for the year if Nardin Outfitters accepts the special order? b. Do you agree with the decision to reject the special order? Complete this question by entering your answers in the tabs below. Required A Required B What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) (All revenues and costs in $000) Status Quo 5000 Units Difference Alternative 7200 Units Sales revenue Variable costs: Manufacturing Selling and administrative Net profit (loss) per case Required: $ (212) a. What is the impact on profit for the year if Nardin Outfitters accepts the special order? b. Do you agree with the decision to reject the special order? Complete this question by entering your answers in the tabs below. Required A Required B What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Variable costs: Manufacturing Selling and administrative Contribution margin Fixed costs Operating profit (All revenues and costs in $000) Status Quo 5000 Units Alternative Difference 7200 Units < Required A Required B > Required: a. What is the impact on profit for the year if Nardin Outfitters accepts the special order? b. Do you agree with the decision to reject the special order? Complete this question by entering your answers in the tabs below. Required A Required B Do you agree with the decision to reject the special order? Do you agree with the decision to reject the special order? < Required A Required B >