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3. A customer has asked Does Corporation to supply 6,000 units of product Y19, with some modifications, for $33.30 each. The normal selling price of this product is $46.50 each. The normal unit product cost of product Y19 is computed as follows: Direct materials... Direct labor. Variable manufacturing overhead. Fixed manufacturing overhead. Unit product cost $16.40 8.30 4.40 1.90 $31.00 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product Y19 that would increase the variable costs by $3.90 per unit and that would require a one-time investment of $20,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order. Show your work! 4. Holden Company produces three products, with costs and selling prices as follows: Selling price per unit...... Variable costs per unit ............ Contribution margin per unit .. Product A $30 100% 18 60% $12 40% Product B $20 100% 15 75% $5 25% Product C $15 100% 6 40% $ 9 60% A particular machine is a bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 1 hour is required to produce each unit of Product B, and 2.5 hours are required to produce each unit of Product C. In which order should it produce its products

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