t general qualitative factors should Glendale consider? alu still make a $3,600 profit before income r Buy Allen Corporation currently makes the nylon convertible top for its m boat designed especially for water skiing. The costs of producing the 1500 op L03 ain product, a needed ch year follow: Nylon fabric Aluminum tubing Frame fittings . .. .$270,000 96,000 24,000 162,000 30,000 152,000 Variable manufacturing overhead.... Dustin Company, a specialty fabricator of synthetic materials, can make the needed tops of comparable ality for $400 each, FO.B, shipping point.Allen would furnish its own trademark insignia at a unit $16. Transportation in would be $28 per unit, paid by Allen Corporation. Allen's chief accountant has prepared a cost analysis that shows that only 20% of fixed overhead ld be avoided if tory building, using equipment for which no alternate use is apparent in the foreseeable future. the tops are purchased. The tops have been made in a remote section of Allen's Required . Prepare a differential analysis showing whether or not you would recommend that the convertible tops be purchased from Dustin Company Assuming that the production capacity released by purchasing the tops could be devoted to a subcontracting job for another company that netted a contribution margin of $41,600, what maxi- mum purchase price could Allen Corporation pay for the tops? Identify two important qualitative factors that Allen Corporation should consider in deciding whether to purchase the needed tops. Dropping Unprofitable Division Based on the following analysis of last year's operations of Bing- LO Inc, a financial vice president of the company believes that the firm's total net income could be