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Whispering Winds Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,500 machine hours. Prices and costs for each product are

Whispering Winds Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,500 machine hours. Prices and costs for each product are as follows:

Widget

Gadget

Selling price per unit

$255 $335

Variable costs per unit

Direct materials

35 40

Other direct costs

15 17

Variable Manufacturing overhead costs*

35 49

* Variable manufacturing overhead costs are applied at a rate of $45 per machine hour. Paver Industries, a potential client, has offered $254 per unit to Whispering Winds for 254 special units. These 254 units would incur the following production costs and time:

Direct materials $8,756
Other direct costs $3,500
Machine hours 230

Assume that Whispering Winds has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Paver were accepted.

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