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

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Wilson Oriole is a leading producer of vinyl 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 over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct materials Direct labor $30.00 17.00 Manufacturing overhead 20.00 Selling and administrative 14.00 Total unit cost $81.00 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. (a1) (a2) (c1) (c2) (d1) 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. Sage Hill Panes has offered to provide them to Wilson at a price of $130.00 per window. Sage Hill 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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