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The Engine Guys produces specialized engines for snow climber' buses. The company's nomal monthly production volume is 6,000 enginies. Whereas its monthily production capocty is

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The Engine Guys produces specialized engines for "snow climber' buses. The company's nomal monthly production volume is 6,000 enginies. Whereas its monthily production capocty is 12,000 engines. The current selling price per engine is $1,000. The cost per unit of manufacturng and marketing the engines at the normal votume is as follows: Requires: Aritwet the fallowing independent quettions Orithis povernistit contact. Compute the interemertal benefit of the contioct 1.b. Indicate whether the Provinclal Bus Company's contract should be accepted. Tes 2-6. An euthide contractor ts whing to supply 3,000 engines at a price of $480 per unit. If the offer is accepted, the company wull make tound interimediste caiculotions. Leove no cells bionk- be certain to enter " 0% whierever roquired.)

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