1 (Special Order) Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data a direct labour $10, and overheads $12 (75% variable). Waterloo Co. has sufficien special order for 40,000 units, but at a discount of 25% from the regular price. S with this order would be $3 per unit. Determine whether Waterloo Co. should accept the special order. [5 marks] Question 2 (Make or Buy) Emil Manufacturing incurs unit costs of $7.50 ($4.50 variable and $3.00 fixed) in part for its finished product. A supplier offers to make 10.000 of the parts for $5 Question 1 (Special Order) Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overheads $12 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 40,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Waterloo Co. should accept the special order. [5 marks]