The Fesco Company manufactures medals for winners of athlectic events. Its manufacturing plant has the capacity to produce 10,000 medals each month

1. (CMA, adapted) The Fesco Company manufactures medals for winners of athletic events. Its manufacturing plant has the capacity to produce 10,000 medals each month. Current production and sales are 7,500 medals per month The company normally charges 150 medals cach month. Cost information for the current activity level is as follows: Variable costs the vary with number of units produced $ 262,500 Direct materials 300,000 Direct manufacturing labor Variable costs (forsetups, materials handing, quality control, and so on that vary with number of batches, 150 batches *500 per batch) 75,000 Fixed manufacturing costs 275,000 Fixed marketing costs 175.000 Total costs $ 1,087,500 Fesco has just received a special one time-only order for 2,500 medals at $100 per medal. Accepting the special order would not affect the company's regular business. Fesco makes medals for its existing customers in batch sizes of 50 medals(150 batches 50 medals per batch-7,500 medals). The special order requires Fesco to make the medals in 25 batches of 100 each. (30 marks) Question : Should Fesco accept this order? Show your calculations 2.Guble Company manufactures wallets from fabric. In 2015, Guble made 2,500,000 wallets using 1,875,000 yards of fabric. In 2016, Guble plans to make 2,650,000 wallets and wants to make fabric use more efficient. At the same time, Guble wants to reduce capacity: capacity in 2015 was 3,000,000 wallets at a total cost of $9,000,000. Guble wants to reduce capacity to 2,800,000 wallets, at a total cost of $8,680,000 in 2016. (20 marks) Suppose that in 2016 Guble makes 2,650,000 wallets, uses 1,669,500 yards of fabric, and reduces capacity to 2.800,000 units and costs to $8,680,000. Question: Calculate the partial-productivity ratios for materials and conversion (capacity costs) for 2015