8 points Enter answer Tubac Glassware creates beautiful hand-blown glass tumblers and pitchers. Xavier's Restaurants, a popular regional fine dining chain, has approached Tubac with an offer to purchase 100 tumblers for $16 each as a proposed quantity discount since typical retail price of Tubac tumblers is $20 each. Fixed costs allocated to each production batch is $38. Additional cost information is detailed below. Assume 50 tumblers and 40 pitchers are produced per batch. Variable prime costs (per unit) Tumblers Pitchers Direct material cost per unit $6 $7 Direct labor cost per unit $4 $5 Variable overhead costs (per batch) Materials receiving and handling $100 Packing and shipping $250 $120 $300 Answer the following questions for Tubac's Production Manager using the following methods for rounding purposes: (i) do not round any required intermediate calculated values (ii) round final answers to the nearest whole dollar [1] What would be the incremental net profit if Tubac accepted this special order? 2 points Multiple choice [2] Should Tubac accept this special order? [a] No 4 points Multiple choice [b] Yes [c] Not enough information [3] In the short term, which of the below would be most relevant for the Production Manager to consider before deciding whether or not to accept this special order? [a] Tubac's Sales Manager is considering increasing the retail price to $21 per tumbler [b] Tubac's Sales Manager is considering lowering the retail price to $19 per tumbler [c] Fixed costs allocated to tumblers is planned to increase to $40 per batch next month [d] Possible impact on others' willingness to pay retail price of $20 per tumbler