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tronwood Company manufactures a variely of sunglasses Production information for its most popular line, the Cle r Vsta (CV), folows Drect materials Direct labor 5.00
tronwood Company manufactures a variely of sunglasses Production information for its most popular line, the Cle r Vsta (CV), folows Drect materials Direct labor 5.00 Total manufacturing cost Suppose that Ironwood has been approached about producing for 2,700 units of custom CV sunglasses for a new semipeofessional voleyball league. All units in the special order woukd be produced in the eaguves sigaf coors th a specially designed logo emblem attached to the side of the glasses. The league has offered to pay $47.00 per unt in the special oeder Additional costs for the special order total $3.00 per unt for mixing the special tame coloe and purchi sng the emblem with the league's logo that wil be atlached to the glasses Required: 1. Assume lronwood has the i sary to accommodate the special order Calculate the addtional contribuion margin Ironwood would make by acceptng the special order a special order hat wil be at idle capacity neces 2-8. Calculate the current contribuson margin per unit (Round your answer to 2 dec mal places.) 2-b. Suppose Ironwood is currentty operating ts production facilty at full capacity and accepting the special order would mean reducing production of ts regular CV model Should ronwood accept the special arder in this case? O Yes No 3. Calculate the special order price per unit at which Ironavood ix indifferent between accepting or rejecting the special order Round your answer to 2 decimal places.) par Uni
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