A. Athos Company produces and sells 10,000 uaits of a single product. Costs associated with this level of production are as follows: The product normally sells for $120 per unit. Athos has received a special order to purchase 2,000 units at $100 per unit. To fill the order, Athos will need to purchase a logo machine for $15,000 which cannot be used for any other purpose. Athos has excess production capacity. Required: i. Should Athos Company accept the special order, why or why not? Provide an analysis to support your decision. (11 marks) ii. List three (3) qualitative factors are relevant to special order (3 marks) B. Assume that a division of Bose makes an electronic component for its speakers. Its manufacturing process for the component is a highly automated part of a just-in-time production system. All labour is considered to be an overhead cont, and all overhead is regarded as fixed with respect to output volume. Production costs for 100,000 units of the component are as follows: A small local company has offered to supply the components at a price of 53.35 each. If the division discontinued its production of the component, it would save fwo-thirds of the supplies cost and $30,000 of indirect labour cost. All other ovechead costs would continue. Required: i. Advice Bose management of which altemative is better for the division (i.e. whether to make or buy the component). Provide an analysis to support your answer. ( 9 marks) ii. List two (2) qualitative factors that are relevant to make or bry. (2 marks) [Total 25 marks] QUESTION 3 A. What effect will tha purchase and use of cheaper, lower-quality materials likely have on price and quantiny components of materials variances? (3 marks) B. "If more experienced workers work on the job than planned in developing the labour standards, the labour efficiency variance is Iikely to be favourable, but the labour rate variance is likely to be unfavourable," Do you agree with this statement? Explain. (3 marks) C. Gii Formulas Regression Analysis a=ybxb=nx2(x)2nxy(x)(y)