Turner, Inc. budgeted 10,000 widgets for production during 2020. Turner has capacity to produce 15,000 units. Fixed factory overhead is allocated using ABC. The following estimated costs were provided:

Direct material ($8/unit): $ 80,000

Direct labour ($20/hr. x 3 hrs./unit) : $600,000

Variable manufacturing overhead ($5/unit) : $50,000

Fixed factory overhead costs ($2/unit): $20,000

Total: $750,000

Cost per unit = $75.00

Answer each of the following independent questions:

1. a)Turner received an order for 3,000 units from a new customer in a country in which Turner has never done business. This customer has offered $73.50 per widget. Should Turner accept the order?
2. b)Turner received an offer from another company to manufacture the same quality widgets for $72.50. Should Turner let someone else manufacture all 10,000 widgets and focus only on distribution?