Help please! Much needed Exercise 21.12 (Static) Pricing a Special Order (LO21-1, LO21-2, LO21-3)Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000units, is as follows:Direct materialsDirect laborOverhead (2/3 of which is variable)$ 69.Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa Hthe capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge thedistributor which will generate an increase in operating income of $2 per unit?a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the uniprice charged to the distributor?b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor wiwill generate an increase in operating income of $60,000 more than it would be without accepting the special order?b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the uniprice charged to the distributor?Complete this question by entering your answers in the tabs below.Reg A1Req A2Reg B1Req B2Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge thedistributor which will generate an increase in operating income of $2 per unit? (Do not round intermediate calculations.)Special SaleSelling priceDrev5. of 5Next a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income orprice charged to the distributor?b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to chargwill generate an increase in operating income of $60,000 more than it would be without accepting the specialb-2. What is your interpretation of the changes to the contribution margin per unit and the operating income oprice charged to the distributor?Complete this question by entering your answers in the tabs below.Req A1Req A2Req B1Req B2Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to cdistributor which will generate an increase in operating income of $2 per unit? (Do not round intermediate calculatSpecial SaleSelling priceLess: Direct materialsDirect laborVariable overheadAdditional shipping costsContribution margin per unitReq A2 >

If firm is operating under capacity and has capacity to fulfill special order then fixed costs are…

lazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,0 nits, is as follows: Direct materials $ 6 Direct labor Overhead (2/3 of which is variable) lazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazepp ne capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.