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Tamarisk Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,000 machine hours. Prices and costs for each product are as

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Tamarisk Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,000 machine hours. Prices and costs for each product are as follows: Widget Gadget $260 $340 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 34 45 14 22 40 54 * Variable manufacturing overhead costs are applied at a rate of $50 per machine hour. Oak Industries, a potential client has offered $259 per unit to Tamarisk for 259 special units. These 259 units would incur the following production costs and time: Direct materials $8,855 Other direct costs $4,000 Machine hours 235 Assume that Tamarisk has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Oak were accepted. Total contribution margin $

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