(10 marks) uestion 2 (25 Marks) Helium Bhd manufactures skateboards. Several weeks ago, the firm received a special-order nquiry from Argon Sdn Bhd. Argon offered to purchase 11,000 units of the skateboards if the order can be completed in three months. The cost data for Helium skateboard follows: Direct material Direct labor:0.25 hour at RM 9.00 Total manufacturing overhead: 0.5 hour at RM 20 Total Additional information: RM 8.20 RM 2.25 RM 10.00 RM 20.45 . The normal selling price of the skateboard is RM 26.50; however, Argon is willing to pay for RM 15.75 only as to enjoy the bulk discount purchase. . Argon demands a modification of the design that results a RM 2.10 reduction in direct material cost. . Helium will have to incur RM 3,700 additional set-up costs and will have to purchase a RM 2,400 special device to manufacture these units. The device will be discarded once the special order is completed. e Total manufacturing overhead costs are applied to production at the rate of RM 20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of RM 750,000 and planned production activity of 60,000 machine hours (5,000 per month) . Helium will allocate RM 1,800 of existing fixed administrative costs to the order as part of the cost of doing business" Required: a) Assuming the present sales is not affected, should the special order be accepted? Support your argument with calculations and reasons (11 marks) Assume that Helium's current production activity consumes 70% percent ofplanned machine-hour activity. Can the company accept the order and meets Argon's deadline? b) (6 marks) Explain 4 (FOUR) options that Helium might consider if management tnuly wanted c) to do business with Argon in hopes of building a long-term relationship with the firm? (8 marks)