The Ebony Corporation sells 250,000 V331 valves to the automobile and truck industry. Ebony has a capacity of 150,000 machine-hours and can produce two valves per machine-hour. V331 's contribution margin per unit is $14. Ebony sells only 250,000 valves because 50,000 valves (20% of the good valves) need to be reworked. It takes one machine-hour to rework two valves, so 25,000 hours of capacity are used in the rework process. Ebony's rework costs are $1, 100,000. Rework costs consist of the following: Direct materials and direct rework labor (variable costs): $10 per unit Fixed costs of equipment, rent, and overhead allocation: $12 per unit Ebony's process designers have developed a modification that would maintain the speed of the process and ensure 100% quality and no rework. The new process would cost $1, 076,000 per year. The following additional information is available: The demand for Ebony's V331 valves is 400,000 per year. The Colton Corporation has asked Ebony to supply 27,000 FU604 valves (another product) if Ebony implements the new design. The contribution margin per FU604 valve is $24. Ebony can make one FU604 valve per machine-hour with 100% quality and no rework. Required: a Suppose Ebony's designers implement the new design. Should Ebony accept Colton's order for 27,000 FU604 valves? Show your calculations. b Should Ebony implement the new design? Show your calculations. c What nonfinancial and qualitative factors should Ebony consider in deciding whether to implement the new design