Alpena Corporation manufactures smartphone and tablet cases. The following is the cost of each unit.
Decatur Devices has approached Alpena with an offer to buy cases at a price of $ each for its new specialty tablet
designed for health care workers. The regular price of an Alpena case is $ Alpena has the capacity to produce units
without Increasing its fixed overhead. Decatur Devices requires that each case use its branding, which requires a more expensive
embossing step. This will result in an additional $ per case labor cost. The materlal cost of of the Decatur case will be the same as
for the current models. The Decatur order will also require a onetime rental of embossing equipment for $
Required:
a Prepare a schedule to show the Impact of filling the Decatur Devices order on Alpena's profits for the year.
b Would you recommend that Alpena accept the order?
c Considering only profit, determine the minimum quantity of cases in the special order that would make it profitable, assuming
capacity is avallable.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A
Prepare a schedule to show the impact of filling the Decatur Devices order on Alpena's profits for the year. Enter your answers in
thousands rounded to decimal place. ie should be entered as Select option "higher" or "lower", keeping
Status Quo as the base. Select "none" if there is no effect.
