9 Kraft Company manufactures and sells a single product called Tingz, Operating at capacity, the company can produce and sell 45,000 units per year. The costs associated with this level of activity are as follows: Total suo Per unit $ S F TE Direct materials 22 990000 Direct labor 12 540000 Variable manufacturing overhead 4 180000 Fixed manufacturing overhead 14 630000 Variable selling expense 8 360000 Fixed selling expense 405000 Total Cost 69 3105.000 Tingz normally sells for $75 each. Fixed manufacturing overhead is constant at $630,000 per year within the range of 35,000 - 45,000 units per year. Next year, Kraft Company expects to produce and sell 40,000 units. A large retail chain has offered to purchase 5000 units if Kraft is willing to accept a 20% discount from the regular price. There would be no sales commission on this order, and thus, variable selling expenses would be slashed by 75%. However, Kraft would have to purchase a special machine costing $40,000 to engrave the retail chain's name on the 5000 units Required: Should Kraft accept the special order? Support your answer with appropriate computations. (13 marks) 9 1 i B