The following data relate to m4 engineering: anticipated 100,000 units normal sales price/ $32 variable manufacturing cost/ $10 variable selling cost/ $5 fixed manufacturing $800,000 ($8.00/unit) fixed selling cost $200,000 ($2.00/unit) total cost/unit (full $25.00 m4 engineering has the opportunity to take a one-time special order from a customer who wants to buy 20,000 units, but is only willing to pay $18.00 per unit. the special order will not affect m4’s anticipated sales to other customers or the company’s fixed costs. should m4 engineering accept the special order? why or why not? show your calculations.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.