Calculators P1c manufacture and sell pocket calculators. The sales price of these calculators is £22. The company's current output is 40000 units per month, which represents 90% of the company's productive capacity. Noxid, a chain store customer who specializes in selling consumable electronic goods, offers to buy 2000 calculators as a special order at £16 each. These calculators would be sold under the name of Noxid.

The total costs per month are £800 000 of which £192 000 are fixed costs.

(a) Advise Calculators Plc whether they should accept the special order.

(b) Would your advice change if Nixod wanted 5000 calcultors?