Hi.

Could you help me with this question. I didn’t get the correct answer.

Thanks.

Alton Inc. is working at full production capacity producing 30,000 units ofa unique product. Manufacturing costs per unit for theproduct are as follows: Direct materials $Direct labor Manufacturing overhead maid l—I Total manufacturing cost per unit 52’— The per-unit manufacturing overhead cost is based on a $6 variable cost per unit and $60,000 fixed costs. The nonmanufacturingcosts, all variable, are $6 per unit, and the sales price is $40 per unit. Sports Headquarters Company (SHC) has asked Alton to produce 6,000 units of a modification of the new product. This modificationwould require the same manufacturing processes. However, because of the nature of the proposed sale, the estimatednonmanufacturing costs per unit are only $3 (not $6). Alton would sell the modified product to SHC for $30 per unit. Required 1—a. Calculate the contribution margin for 6,000 units for both the current and special order. 1—b. Should Alton produce the special order for SHC? 2. Suppose that Alton Inc. had been working at less than full capacity to produce 25,000 units of the product when SHC made theoffer. What is the minimum price per unit that Alton should accept for the modified product under these conditions? Complete thls questlon by enterlng your answers In the tab: below. .IIIHHIIIIIIIIIHHIIIIIIIIIIIIIIIII Calculate the contribution margin for 6,000 units for both the current and special order. —_Special order –