Beauty Windows Berhad is a leading producer of vinyl replacement windows. The com pany's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Muar City with an annual capacity of 500,000 windows. Current production is budgeted at 400,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: Direct Materials RM 3? Direct Labor 16 Manufacturing overhead 24 Selling and administrative _13 Total unit cost RM 90 The company's budget includes RM6,000,000 in xed overhead and RM3,200,000 in xed selling and administrative expenses. The windows sell for RM140 each. A 2% distributor's commission is included in the selling and administrative expenSEs. Required a. Northern Homes, Malaysia's second largest homebuilder, has approached Beauty Window with an offer to buy T5,000 windows during the coming year. Given the size of the order, Northern has requested a 45% volume discount on Beauty's normal selling price. Should Beauty grant Northem's request? b. Return to the original data. Home Savers Inc. [HSI] hasjust signed a contract with the state government to replace the windows in low-income housing units throughout the state. HSI needs 125,000 windows to complete the job and has offered to buy them from Beauty at a price of RMBZ per window. HSI will pick up the windows at Beaqu plant, so Beauty will not incur the RMZ per window shipping charge. In addition, Beauty will not need to pay a distributor's commission, since the windows will not be sold through a distributor. should Beauty accept HSI's offer? c. If Beauty decides to accept HSI's offer, it will need to find an additional 25,000 windows to meet both the special order and normal sales. AndErson Windows has offered to provide them to Beauty at a price of RM 108 per wind0w. Anderson will deliver the windows to Beauty, and Beauty would then distribute them to its customers. Should Beauty outsource the production ofthe extra windows to Anderson