(a) Ahmed Manufacturing LLC is considering using stocks of an old raw material in a special project. The special project would require all 210 kilograms of the raw material that are in stock and that originally cost the company OMR1,804 in total. If the company were to buy new supplies of this raw material on the open market, it would cost OMR8.55 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of OMR7.75 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of OMR79.00 for all 210 kilograms. (i) Calculate the relevant costs of the 210 kilograms of the raw material when deciding whether to proceed with the special project; and (ii) Explain why you consider such costs as relevant to the decision. (6 marks) (b) Ahmed Manufacturing LLC is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to generate additional profits. A potential customer has offered to buy 1,600 units of component Y. Each unit of Y requires 8 units of material X and 1 unit of material Z. Data concerning these two materials are given below: Material Units in Stock Original Cost/Unit Current market Price/unit Disposal Value/unit X 4,280 OMR4.20 OMR3.85 OMR3.65 Z 1,500 OMR9.30 OMR9.30 OMR7.95 Material X is in use in many of the company's products and is routinely re-stock. Material Z is no longer used by the company in any of its normal products and existing stocks would not be re-stock once they are used up. Calculate the minimum acceptable price for the order for component Y (7 marks) (c) The management of Ahmed Manufacturing LLC is considering dropping product RC. Data from the company's accounting system appear below: Sales OMR130,000 Variable Costs OMR65,000 Fixed manufacturing Costs OMR49,000 Fixed Selling and Administrative Costs OMR35,000 In the company's accounting system, all fixed expenses are fully allocated to products. Further investigation has revealed that 30% of the fixed manufacturing expenses and 20% of the fixed selling and administrative expenses are avoidable if product RC is discontinued. What would be the effect on the company's overall net operating income if product RC were dropped?