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Wilson Carla Vista is a leading producer of vimyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The

Wilson Carla Vista is a leading producer of vimyl replacement windows. The company's growth strategy focuses on developing
domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual
capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant cwer
the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows:
The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The
windows sell for $150,00 each. A 2% distributor's commission is included in the selling and administrative expenses.
(d1)
Gour answer is incorrect.
If Wilson decides to accept Monk's offer, it will need to find an additional 30,000 windows to meet both the special order and
normal sales. Tamarisk Panes has offered to provide them to Wilson at a price of $130.00 per window. Tamarisk Panes will deliver
the windows to Wilson, and Wilson would then distribute them to its customers.
Calculate total contribution from outsourcing.
Total contribution from outsourcing $
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