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(Solved): PR 14-56 (Algo) Special Order; Ethics (LO 14-3, 14-4, 14-5) [The following information applies to t ...




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PR 14-56 (Algo) Special Order; Ethics (LO 14-3, 14-4, 14-5) [The following information applies to the questions displayed below.] Winner's Circle, Incorporated, manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 3,500 medals each month. Current monthly production is 2,625 medals. The company normally charges per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows: Winner's Circle has just recelved a special one-time order for 875 medals at per medal. For this particular order, no variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor. PR 14-56 (Algo) Part 2: Compute both the new average unit cost and the incremental unit cost for the special order. 2-a. Compute both the new average unit cost and the incremental unit cost for the special order, 2-b. Should Winner's Circle, Incorporated accept the special order? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Compute both the new average unit cost and the incremental unit cost for the special order. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Should Winner's Circle, Incorporated accept the special order?


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2-a. Computation of the new average unit cost and the incremental unit cost for the special...
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