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units of one of its most popular products. Grant currently manufactures 43,000 units of this product in its Loveland, Ohio. plant. The plant is operating

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units of one of its most popular products. Grant currently manufactures 43,000 units of this product in its Loveland, Ohio. plant. The plant is operating at 50% capacity. There will be no marketing costs on the special order. The sales manager of Grant wants to set the bid at $12 because she is sure that Grant will get the business at that price Others on the executive committee of the firm object, saying that Grant would lose money on the special order at that price Units 43, eee 64,5ee Manufacturing costs: Direct materials $ 172,eee $ 258,000 Direct labor 215, eee 322,500 Factory overhead 215,000 258, eee Total manufacturing costs $ 6e2,eee $ 838,500 Unit cost $ 14 $ 13 Required: 2. What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short term operating income if the order is accepted at the price recommended by the sales manager? 4. What would the total opportunity cost be if by accepting the special order the company lost sales of 6,100 units to its regular customers? Assume the preceding facts plus a normal selling price of $26 per unit Complete this question by entering your answers in the tabs below. Required 2 Required 4 What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating income if the order is accepted at the price recommended by the sales manager? Required 2 Required 4 What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating income if the order is accepted at the price recommended by the sales manager? Relevant cost per unit Bid price per unit should be any price above Change in short-term operating income Required Required 4 > Complete this question by entering your answers in the tabs below. Required 2 Required 4 What would the total opportunity cost be if by accepting the special order the company lost sales of 6,100 units to its regular customers? Assume the preceding facts plus a normal selling price of $26 per unit. Total opportunity cost

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