SafeRide, Inc_ Accept or reject the order SafeRide, Inc_ Accept or reject the order Question SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year, it is currently producing at an annual rate of 180,000 units. SafeRide, Inc. has received an order from a German manufacturer to purchase 60,000 units at $9.00 each. Budgeted costs for 180,000 and 240,000 units are as follows: Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW 180,000 Units 240,000 Units Manufacturing costs Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW Direct materials $ 450,000 $ 600,000 Direct labor 315,000 420,000 Factory overhead 1,215,000 1,260,000 Total 1,980,000 2,280,000 Selling and administrative 765,000 780,000 Total $ 2,745,000 $ 3,060,000 Costs per unit Manufacturing $ 11.00 $ 9.50 Selling and administrative 4.25 3.25 Total $ 15.25 $ 12.75 Sales to North American manufacturers are priced at $20 per unit, but the sales manager believes the company should aggressively seek the German business even if it results in a loss of $3.75 per unit. She believes obtaining this order would open up several new markets for the company's product. The general manager commented that the company cannot tighten its belt to absorb the $225,000 loss ($3.75 × 60,000) it would incur if the order is accepted. (a) Calculate the net benefit (cost) of accepting the order from the German business. (b) Calculate the net benefit (cost) of accepting the order from the German business, assuming the company is operating at full capacity.