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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

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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 as follows: a Widget Gadget $255 $335 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 35 40 15 17 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. Total contribution margin $ Assume that Whispering Winds is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, eg. 12.25 and final answers to O decimal places, c.8. 125.) Widget Gadget New Order CM per unit $ $ $ $ CM per machine hour Determine whether Whispering Winds should produce the units for the special order instead of widget or gadget units. Whispering Winds produce the units for the special order instead of widget or gadget units Assume that Whispering Winds is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Paver's special order were accepted. Opportunity cost $ Assume that Whispering Winds is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $35,500 to produce Paver's special order. If the special order is accepted, calculate its effect on Whispering Winds's proht. $ Net profit from doing the special order

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