Violet Corporation is working at full production capacity producing 15,000 units of a unique product, Evermore. The projected contribution format income statement for next month (based on full production capacity) is as follows:

Sales V ariable CGS Variable SG&A Contribution margin FMOH FSG&A

Operating Income

$900,000 $420,000 $135,000 $345,000 $150,000 $0

$195,000

A customer, the Apex Company, has asked Violet Corp to produce 5,000 units of Evermost, a modification of Evermore. Evermost would require the same manufacturing processes as Evermore. Apex has offered to pay Violet Corp $45 for a unit of Evermost and share one third of the SG&A cost per unit.

What is the opportunity cost to Violet Corp of producing the 5,000 units of Evermost?

The Chesapeake Corporation has offered to produce 5,000 units of Evermore for Violet Corp so that Violet Corp may accept the Apex offer. That is, if Violet Corp accepts the Chesapeake offer, Violet Corp would manufacture 10,000 units of Evermore and 5,000 units of Evermost and purchase 5,000 units of Evermore from Chesapeake. Chesapeake would charge Violet Corp $40 per unit to manufacture Evermore. If Violet Corp decides to accept the Chesapeake offer, by how much would Violet Corp expect operating income to change?

Other than expected change in operating income, what are some non-financial reasons why Violet Corp may or may not what to take the special order from Apex Company, while outsourcing some of the normal operations to Chesapeake Corporation?