Beau Trophies Inc. (BTI) manufactures trophies for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 15.000 medals cach month. Current monthly production and selling volume is at 90% of the capacity. The company normally charges $180 per trophy. Variable costs and fixed costs for the current activity level are as follows Variable costs: Direct material Direct labour Marketing Fixed costs: Manufacturing Marketing $540,000 810,000 405.000 300,000 120,000 BTI has just received a special one-time order for 2.500 at $120 per medal from Africa Inc., a South African company. For this order, 40% of variable marketing costs will be eliminated. Sofie Dossi, a management accountant with BTI, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Sofie suggested to her supervisor, Stevie Wonder, who is the controller, that they request competitive bids from vendors for the raw materials, as the current purchase price seems high Stevie Wonder insisted that the prices are in line with those of other vendors and told her that she was not to discuss her observations with anyone else. Sofie later discovered that Stevie is a brother in-law of the owner of the current raw material supply vendor REQUIRED: 1. Present the income statement without the special order. Your calculations must show the operating income and contribution margin per unit. 2. Identify and explain the costs that will be relevant to Sofie Dossi's analysis of the special order being considered by BTI? Show calculations 3. Calculate the increase (decrease) in Operating Income from the special order. Should BTI accept the special order? If not, what is the minimum price it should accept? 4. Discuss two qualitative factors that Sofie Dossi should include in her analysis of the special order. ........................ ERRE... .... ............ ... ....BERRIBERR IER * *** . . ..................................................... 5. What steps might Sofie Dossi take to resolve the ethical conflict arising out of the controller's insistence that the company avoid competitive biddings