At the Kicher Company's current activity level of 8,000 units per month, the costs of producing and selling one unit of the company's only product are as follows: 29 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $5.00 $6.00 $1.00 $9.00 53.00 $4.00 The normal selling price is $26 per unit. An order has been received from a potential customer overseas for 4.000 units at a price of $24.00 per unit. This order would not affect regular sales. The company's capacity is 12,000 units per month and enough excess capacity exists to fill this order Required: 1. If the order is accepted, by how much will monthly profits increase or decrease? (The order would not change the company's total fixed costs.) Monthly profits by 2. Assume the company has 500 units of this product left over from last year that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? (Round the final answer to 2 decimal places.) Relevant cost Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Boli in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $838. Selected data for the company's operations lost year follow: 17.000 14,000 3,000 240 390 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 47 24 $860,000 $760,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. Unit product cost 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. Unit product cost