Act . ma Q-4 Suggested time allocation : 10 minutes 15 points The Gladu company manufactures a single product. The costs of manufacturing and selling one unit of this product at the current level of activity of 8,000 units per month are as follows 2. 50 Raw. Direct. Variable Fixed 1.50 expenses. 2.00 labor 3.00 manufacturing overhead. 0.50 manufacturing overhead 4.25 Fixed selling and administrative Normally, the selling price of this product is $15 per unit. The company has a production capacity of 10,000 units per month. It has just received an order from a potential overseas customer for 2,000 units of its product at $12 per unit. This order would have no effect on regular sales. A) If the company were to accept the order, by how much would its monthly earnings increase or decrease? (The order would not result in any change in the company's total fixed costs). B) Suppose the company has 500 units of this product left over from last year, but of lower quality than this year's model. The company would have to sell these units through the usual distribution channels at a reduced price. What unit cost is relevant in setting the minimum selling price for these units? Explain your answer Q-5Suggested time allocation : 15minutes 15 points ords TE English (United States) Focus Act . ma Q-4 Suggested time allocation : 10 minutes 15 points The Gladu company manufactures a single product. The costs of manufacturing and selling one unit of this product at the current level of activity of 8,000 units per month are as follows 2. 50 Raw. Direct. Variable Fixed 1.50 expenses. 2.00 labor 3.00 manufacturing overhead. 0.50 manufacturing overhead 4.25 Fixed selling and administrative Normally, the selling price of this product is $15 per unit. The company has a production capacity of 10,000 units per month. It has just received an order from a potential overseas customer for 2,000 units of its product at $12 per unit. This order would have no effect on regular sales. A) If the company were to accept the order, by how much would its monthly earnings increase or decrease? (The order would not result in any change in the company's total fixed costs). B) Suppose the company has 500 units of this product left over from last year, but of lower quality than this year's model. The company would have to sell these units through the usual distribution channels at a reduced price. What unit cost is relevant in setting the minimum selling price for these units? Explain your answer Q-5Suggested time allocation : 15minutes 15 points ords TE English (United States) Focus