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 total 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 material
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 available.
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